# Capital Gains Tax on Shares 2025/26: Rates, Allowances & Strategies

Understand UK Capital Gains Tax rules for share sales in the 2025/26 tax year. Learn about the £3,000 tax-free allowance, the 18% and 24% tax rates, and how to use spouse transfers to reduce your liability.

**Published:** 2026-07-03  
**Updated:** 2026-07-03  
**Source:** https://aztajournal.com/gb/capital-gains-tax-shares-2025-26

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> This guide outlines the UK Capital Gains Tax rules for share sales in the 2025/26 tax year. Learn about the £3,000 tax-free allowance, the 18% and 24% tax rates, and how to use partner transfers to reduce your tax liability.

- The tax-free Capital Gains Tax allowance for individuals is capped at **£3,000** for the 2025/26 tax year.
- Tax rates for share gains are set at **18%** for basic-rate taxpayers and **24%** for higher-rate taxpayers.
- The annual allowance operates on a strict **'use it or lose it'** basis and cannot be carried forward to 2026/27.
- Spouses and civil partners can transfer shares tax-free to effectively access a combined **£6,000** allowance.

## I sold shares and made a gain: what rate do I pay?

For the 2025/26 tax year, you will pay either 18% or 24% Capital Gains Tax on share sales, depending on your total income. These rates are legislated under the Taxation of Chargeable Gains Act 1992.

Your tax rate is determined by adding your taxable gains to your taxable income. Any gains within the basic-rate band are taxed at the lower rate, while gains exceeding the threshold are charged at the higher rate.

| Income Band | CGT Rate on Shares (2025/26) |
| --- | --- |
| Basic Rate (Income up to £50,270) | 18% |
| Higher or Additional Rate (Income over £50,270) | 24% |

## What is the CGT annual exempt amount for 2025/26?

The annual exempt amount is the statutory tax-free threshold for capital gains within a specific tax year. For individuals, this means you only pay tax on gains that exceed this set limit.

According to the Taxation of Chargeable Gains Act 1992, section 1K(2), the individual allowance is **£3,000** for the 2025/26 tax year. Most trustees are entitled to a maximum exemption of **£1,500** for the same period.

This allowance is personal and cannot be carried forward to the 2026/27 tax year. If you do not realise gains to utilise your exemption before 5 April 2026, the allowance is permanently lost.

## How do I calculate Capital Gains Tax if my income straddles bands?

If your income and gains cross the basic-rate threshold, you calculate tax by using up your remaining basic-rate band first. This ensures only the excess portion of your gain is taxed at the higher 24% rate.

Taxpayers must follow a specific sequence to find their total taxation when a share gain straddles the £50,270 basic-rate threshold:

1. Identify your total taxable income for the year, excluding your capital gains.
2. Subtract your taxable income from the £50,270 basic-rate threshold to find your remaining basic-rate capacity.
3. Apply your £3,000 annual exempt amount to your total share gain to find the taxable gain.
4. Tax the portion of the gain that fits within your remaining basic-rate capacity at 18%.
5. Tax the remainder of your taxable gain at the higher rate of 24%.

### Worked Examples: Calculating CGT on Share Disposals

These worked examples illustrate how different income levels affect tax liabilities for the 2025/26 tax year. Both scenarios assume the individual has utilised their £3,000 tax-free allowance against their total gain.

| Taxpayer Scenario | Basic-Rate Taxpayer Example | Straddling Taxpayer Example |
| --- | --- | --- |
| Taxable Annual Income | £30,000 | £45,000 |
| Remaining Basic Band | £20,270 | £5,270 |
| Taxable Gain (After Exemption) | £15,000 | £15,000 |
| Tax Charged at 18% | £2,700.00 (On £15,000) | £948.60 (On £5,270) |
| Tax Charged at 24% | £0.00 | £2,335.20 (On £9,730) |
| Total CGT Due | £2,700.00 | £3,283.80 |

## How do capital losses reduce my taxable gain?

Capital losses reduce your overall taxable gain by offsetting the losses you make on other share sales in the same tax year. This calculation is performed before applying your tax-free allowance.

You must offset current-year losses against your current-year gains first, even if this reduces your net gains below the £3,000 exemption limit. Unused losses from previous tax years can then be brought forward to reduce your remaining taxable gain to the £3,000 threshold.

## Can I transfer shares to my spouse to double our allowance?

You can transfer shares to your spouse or civil partner tax-free, which allows both partners to use their individual tax-free allowances. This effectively doubles your combined annual household exemption.

Under statutory rules, transfers between spouses and civil partners are treated as 'no gain, no loss' transactions. By transferring shares before a sale, a couple can utilise two separate £3,000 annual exemptions to shelter up to £6,000 of gains from tax.

## Does Business Asset Disposal Relief apply to my share sale?

Business Asset Disposal Relief applies to share sales if you meet specific qualifying conditions, such as owning a designated percentage of a personal company. This relief provides a preferential tax rate on eligible disposals.

For the 2025/26 tax year, qualifying share sales benefit from a reduced tax rate of **14%**. Under current legislative plans, this relief rate will rise to **18%** starting on 6 April 2026. This relief is subject to a strict **£1 million** lifetime limit on qualifying gains.

### What is the tax-free Capital Gains allowance for 2025/26?

The tax-free allowance for the 2025/26 tax year is £3,000 for individuals and £1,500 for most trustees.

### What are the Capital Gains Tax rates on shares for 2025/26?

The rates are 18% for individuals whose total income falls within the basic-rate band and 24% for individuals in the higher or additional-rate bands.

### How does the CGT allowance work for spouses?

Spouses can transfer shares to each other without triggering a tax charge, enabling them to combine their separate £3,000 allowances to exempt up to £6,000 of gain.

### Can I carry forward an unused Capital Gains Tax allowance?

No, you cannot carry forward any unused allowance. If you do not use your £3,000 exemption before April 6, it expires.

### What is the CGT exemption limit for trusts in 2025/26?

For the 2025/26 tax year, the capital gains exempt amount for most trusts is capped at £1,500.