Capital Gains Tax on a £250,000 Gain 2026/27
After the £3,000 annual exempt amount, a basic-rate taxpayer (£35,000 other income) owes £58,364 CGT on a £250,000 gain. A higher-rate taxpayer (£55,000 other income) owes £59,280.
A £250,000 gain is most often a business sale or a property owned for a very long time. Without reliefs the bill is £58,363.80 to £59,280. With Business Asset Disposal Relief on a qualifying business, the report engine puts it at £44,460 for a seller on £55,000, a saving of £14,820.5
Which rate does a £250,000 gain pay at different incomes?
| Other income | Band left | At 18% | At 24% | CGT |
|---|---|---|---|---|
| £20,000 | £30,270 | £30,270 | £216,730 | £57,463.80 |
| £35,000 | £15,270 | £15,270 | £231,730 | £58,363.80 |
| £45,000 | £5,270 | £5,270 | £241,730 | £58,963.80 |
| £55,000 | £0 | £0 | £247,000 | £59,280 |
The difference between the lowest and highest incomes in the table is £1,816.20, the same as on every page from £40,000 up: once the taxable gain is bigger than the band, the 6-point gap only ever applies to one band's worth.1
For a seller on £55,000 without BADR, each extra £10,000 of gain costs £2,400; with BADR on a qualifying gain it costs £1,800, as long as the gain stays within the lifetime limit.5
Can you pay less on a £250,000 gain?
| Option | CGT | Saving |
|---|---|---|
| Sell it all in 2026/27 | £59,280 | - |
| Half before 6 April 2027, half after | £58,560 | £720 |
| Half given first to a spouse with no income | £56,298 | £2,982 |
| Half given first to a spouse earning £35,000 | £57,643.80 | £1,636.20 |
| £10,000 gross pension contribution | £58,963.80 | £316.20 |
| £20,000 gross pension contribution | £58,363.80 | £916.20 |
Selling before or after 6 April 2027
BADR timing: with no earlier claims, a £250,000 qualifying gain sits inside both the £1 million limit before 6 April 2027 and the £500,000 limit after, so the date does not change the relief.6 If you have claimed BADR before, those claims count towards the limit, and the lower limit could leave less of this gain qualifying.5
Giving half to a spouse or civil partner
If you and your spouse both own shares in the company and each meets the conditions, each of you has your own BADR lifetime limit.5 Without BADR, a spouse transfer saves £2,982.2
Pensions, ISAs and reliefs
BADR now taxes qualifying gains at 18%, the same as the basic CGT rate, so its value is the 6 points on the part of the gain that would otherwise be above your band. Business Asset Rollover Relief can delay the tax if you put the proceeds into new qualifying business assets.7
Reporting and paying the tax
A BADR gain goes on the capital gains pages of your tax return; for a 2026/27 disposal the return and payment are due by 31 January 2028.34 Keep evidence that the conditions were met for the two years before the sale.5
Your own figures: use the full calculator → for your sale price, costs, losses and income.
CGT on other gain amounts
Frequently asked questions
How much CGT on £250,000 with BADR?
£44,460 for a seller with £55,000 of income if all of the gain qualifies, against £59,280 without the relief.
Does BADR still save money now its rate is 18%?
Yes, for anyone who would otherwise pay 24%. The BADR rate equals the basic CGT rate, so the saving is 6% on the part of the gain that would have been above your basic-rate band: £14,820 here.
What if I sell the shares in two tranches?
If you sell shares in two tax years, each year has its own allowance and band; without BADR the engine saves £720 for a higher-rate seller. Selling part after 5 April 2027 also brings the lower BADR limit into play.
Figures from our calculator engine, 7 November 2026. Guidance only, not advice.
Sources & references
The rates, allowances and rules in this guide are drawn from the official HMRC and GOV.UK sources below, checked for the 2026/27 tax year. Each link opens the relevant government page in a new tab.
- Capital Gains Tax: rates www.gov.uk/capital-gains-tax/rates
- Capital Gains Tax: gifts to your spouse or charity www.gov.uk/capital-gains-tax/gifts
- Report and pay CGT: if you have other capital gains to report www.gov.uk/report-and-pay-your-capital-gains-tax/if-you-have-other-capital-gains-to-report
- Self Assessment: Capital Gains summary (SA108) and notes www.gov.uk/government/publications/self-assessment-capital-gains-summary-sa108
- Business Asset Disposal Relief www.gov.uk/business-asset-disposal-relief
- Budget 2026: Overview of tax legislation and rates (OOTLAR) www.gov.uk/government/publications/budget-2026-overview-of-tax-legislation-and-rates-ootlar/budget-2026-overview-of-tax-legislation-and-rates-ootlar
- Business Asset Rollover Relief www.gov.uk/business-asset-rollover-relief