Guides › Public Services › Capital Gains Tax: The £3,000 Allowance and 18% or 24% Rates
Capital Gains Tax: The £3,000 Allowance and 18% or 24% Rates
Capital Gains Tax is paid on the profit when you sell or give away something that has gone up in value, such as shares or a second property. For 2026 to 2027 the tax-free allowance is £3,000. Gains within your basic rate band are taxed at 18% and the rest at 24%. You do not usually pay it when you sell your home.
At A Glance
Your Rights
What the rules say, with a link to the official source for each.
Capital Gains Tax
Rates
From 6 April 2026: 18% for gains within your basic rate band and 24% above it. Higher and additional rate taxpayers pay 24%. source
Allowance
The tax-free allowance is £3,000 for 2026 to 2027. Deduct it from your total gains before working out the tax. source
Working It Out
Work out your taxable income, add your gains after the allowance, and see how much falls within the basic rate band. You do not usually pay tax when you sell your home. source
Time Limits to Know
Miss a deadline and you can lose a right. Check the dates on your own paperwork.
- 2026 to 2027Allowance of £3,000Per tax year
Steps to Take
Step 1 of 5
List what you sold and what you paid for it.
Step 2 of 5
Deduct allowable costs.
Step 3 of 5
Take off the £3,000 allowance.
Step 4 of 5
Work out how much is in your basic rate band.
Step 5 of 5
Report and pay on GOV.UK if tax is due.
(Tap the numbers to reveal steps)
Where to Go If It Is Not Put Right
Your options, in order, and when each one applies.
HMRC
Contact HMRC through your personal tax account, the HMRC app or the phone and post details on GOV.UK.
Free Tax Help
TaxAid and Tax Help for Older People give free advice if your income is low.
Good to Know
Small things that make your complaint stronger.
Keep records of purchase prices and costs: you need them to work out the gain.
Want Help?
If you would like one of our team to look at your problem, our initial case review is free. We cannot guarantee any outcome and we do not give legal advice.
Lead reviewer
Luke Marley
Founder and Lead Reviewer
Luke founded CPUK in 2026 after seeing how hard it is for ordinary people to get problems with companies put right. He oversees our guides and checks them against official sources.
Research by Katie Burt, Co-founder and Operations Lead (17 years in the care sector, including managing services for vulnerable adults), and the CPUK Research Team. Researched with AI-assisted research tools, then checked and corrected by our team.
Last checked: 16 October 2026. We are not paid by the companies we write about. Adverts never affect our guidance. Read our editorial policy.
Sources and official links
- gov.uk/capital-gains-tax/rates Checked 16 October 2026