What are Capital Gains Tax rates in UK?
NOTE: this guide has been updated for the 2020/2021 tax year.
You need to pay Capital Gains Tax (CGT) when you profit from selling valuable assets such as shares, cryptocurrencies, art, or property.
For the 2020/2021 tax year capital gains tax rates are:
- 10% (18% for residential property) for your entire capital gain if your overall annual income is below £50,000
- 20% (28% for residential property) for your entire capital gain if your overall annual income is above the £50,000 threshold
Individuals have a £12,300 capital gains tax allowance. This means your capital gains up to £12,300 are tax free.
Normally you don’t have to pay any capital tax on selling your main home.
Capital Gains Tax rates
| Type of asset | Basic rate | Higher rate |
|---|---|---|
| Shares | 10% | 20% |
| Residential property | 18% | 28% |
| Bitcoin/Cryptocurrency | 10% | 20% |
| Other | 10% | 20% |
Tax-free allowance
| Allowance for | Annual exempt amount |
|---|---|
| Individuals | £12,300 |
| Trusts | £6,150 |
If you need to quickly see how much tax you need to pay view our capital gains tax calculator.
Hey there! We really hope this article helped you. Tax matters can be a dreadful topic at times. We know. That's why we started TaxScouts.
A stress-free way to getting your taxes done.
Have a minute? See how it works