What Is Capital Gains Tax | Business Accounting and Tax Limited
What is capital gains tax? It is a tax on the profit you make when you sell or dispose of an asset that has increased in value.
This guide covers the current rates, key assets affected, and compliance requirements for UK business owners.
Current Capital Gains Tax Rates for 2026
For the 2025/26 tax year, capital gains tax rates are 18% for basic rate taxpayers and 24% for higher or additional rate taxpayers.
These rates are simplified and below standard income tax rates.
What Assets Are Subject to Capital Gains Tax?
Capital gains tax applies to various assets when sold for a profit.
- Property, including second homes and buy-to-let
- Shares and investments
- Business assets
- Cryptocurrencies
Annual Exemption and Reporting Requirements
Individuals have an annual capital gains tax exemption of £3,000 for the 2025/26 tax year.
For UK residential property sales, you must report and pay CGT within 60 days of completion.
Recent Changes to Capital Gains Tax in 2026
From April 2026, CGT on business assets under Business Asset Disposal Relief increases from 14% to 18%.
This is part of broader tax adjustments for the year.
How to Plan for Capital Gains Tax
Capital gains tax rates for residential property and other assets are aligned, depending on your income level.
Strategic planning can help manage your tax liability effectively.
Ready to Optimise Your Capital Gains Tax Strategy?
Understanding capital gains tax is crucial for managing your business finances.
Our team at Business Accounting and Tax Limited offers expert advice on tax planning, automation, and international services.
