Capital Gains Tax on £425,000

Capital gains tax on a £425,000 gain in the 2026-27 tax year (with a £30,000 salary): £82,373 on shares and other assets (10%/20% rates), or £100,063.8 on residential property (18%/24% rates). The £3,000 annual exempt amount is deducted first.

A £425,000 capital gain on top of a £30,000 salary pushes part of your gain into the higher rate band. On shares/crypto, your CGT is £82,373 (split between 10% and 20%). On residential property, it's £100,063.8 (split between 18% and 24%). Your effective CGT rate is 19.4% on other assets.

How UK Capital Gains Tax works

Capital Gains Tax is charged on the profit when you sell (or "dispose of") an asset that has increased in value. In the 2026-27 tax year, everyone gets a £3,000 annual exempt amount — gains below this are tax-free (reduced from £6,000 in 2023/24 and £12,300 in 2022/23).

CGT rates depend on the type of asset:

• Shares, crypto & other assets: 10% (basic rate) / 20% (higher rate)
• Residential property: 18% (basic rate) / 24% (higher rate)

Which rate you pay depends on your total taxable income — your gain sits on top of your other income when determining which band applies. If your salary already uses up the basic rate band (£37,700 of taxable income), your entire gain is taxed at the higher rate.

Your CGT band breakdown

With a £30,000 salary, your taxable income (after the £12,570 personal allowance) is £17,430. This uses £17,430 of the £37,700 basic rate band, leaving £20,270 of basic rate band available for your gain.

Of your £422,000 taxable gain (after the £3,000 exempt amount):

• £20,270 falls in the basic rate band
• £401,730 falls in the higher rate band

Residential property vs other assets

Other assets	Residential property
Basic rate	10%	18%
Higher rate	20%	24%
CGT on £425,000 gain	£82,373	£100,063.8
Effective rate	19.4%	23.5%
Net gain	£342,627	£324,936.2

The difference is £17,690.8 — residential property gains are taxed more heavily.

Related calculations

• See your take-home pay on a £30,000 salary to understand your overall tax position
• On a £50,000 salary, the same £425,000 gain would cost £84,373 in CGT (more because more of the gain falls in the higher rate band)
• See CGT on a £435,000 gain

Frequently asked questions

How much CGT do I pay on £425,000?

With a £30,000 salary, you pay £82,373 CGT on shares/crypto or £100,063.8 on residential property. The £3,000 annual exempt amount is deducted first.

When do you pay Capital Gains Tax?

For most assets, you report and pay CGT through your Self Assessment tax return by 31 January following the end of the tax year. For UK residential property, you must report and pay within 60 days of completion using the "Report and pay CGT on UK property" service.

What is Private Residence Relief?

Your main home (private residence) is usually exempt from CGT when you sell it, provided you have lived in it as your only or main home for the entire period of ownership. This is known as Private Residence Relief (PRR). Letting relief may also apply if you rented out part of your home.

Can I use losses to reduce my CGT?

Yes. Capital losses from the same tax year are automatically offset against gains. Losses from previous years can be carried forward and used to reduce gains below the annual exempt amount. You must report losses to HMRC within 4 years to carry them forward.

What is the annual exempt amount for 2026-27?

The CGT annual exempt amount is £3,000 for 2026-27. This has been significantly reduced from £12,300 in 2022/23, £6,000 in 2023/24, and is now £3,000 from 2024/25 onwards.