£40,000 Capital Gain After Tax 2025-26
Residential Property · £0 (no income) income · Effective CGT rate: 16.65%
CGT breakdown 2025-26
| Item | Amount |
|---|---|
| Total gain | £40,000 |
| CGT annual allowance (tax-free) | −£3,000 |
| Taxable gain | £37,000 |
| Basic rate portion (18%) | £37,000 |
| CGT due | −£6,660 |
| Gain after CGT | £33,340 |
CGT rate applied
Your entire taxable gain falls within the basic rate band, so it is taxed at 18% (residential property).
2025-26 CGT rates — Residential Property
How much CGT on a £40,000 gain with £0 (no income) income?
A £40,000 capital gain on residential property with no other income results in a CGT bill of £6,660 for 2025-26. After deducting the £3,000 annual CGT allowance, your taxable gain is £37,000. You keep £33,340 of your £40,000 gain, giving an effective CGT rate of 16.65%.
Your entire taxable gain falls within the basic rate band, so it is taxed at 18% (residential property).
Capital Gains Tax on residential property uses two rates in 2025-26: 18% for gains within the basic rate band and 24% for gains in the higher rate band. Whether your gain falls into the basic or higher rate band depends on how much of the basic rate band (up to total income of £50,270) remains after your employment income. Your income of £0 (no income) is added first, and your capital gain sits on top. Report CGT via Self Assessment by 31 January following the tax year.
Frequently asked questions
How much CGT do I pay on a £40,000 gain?
On a £40,000 capital gain from residential property with no other income, you pay £6,660 in Capital Gains Tax for 2025-26. The first £3,000 is covered by your annual CGT allowance, leaving a taxable gain of £37,000. Your effective CGT rate on the total gain is 16.65%.
What is the CGT rate on residential property in 2025-26?
Residential property gains are taxed at 18% (basic rate band) and 24% (higher rate band) for 2025-26. The rate that applies to your gain depends on how much of the basic rate band (up to £50,270 combined income and gain) remains after your other income.
How does my £0 (no income) income affect my CGT rate?
With no other income, you have the full basic rate band available (up to £37,700 of taxable gain at the lower rate). The first £3,000 is tax-free. After the allowance, gains up to £37,700 are taxed at 18% and any amount above that at 24%.
What is the CGT annual allowance for 2025-26?
The Capital Gains Tax annual allowance for 2025-26 is £3,000. This means the first £3,000 of your total capital gains in the tax year is tax-free. Any gains above this amount are subject to CGT at the applicable rate (10%/18% basic rate or 20%/24% higher rate depending on asset type and your income level).
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