Capital Gains Tax on a £500,000 Gain 2026/27
After the £3,000 annual exempt amount, a basic-rate taxpayer (£35,000 other income) owes £118,364 CGT on a £500,000 gain. A higher-rate taxpayer (£55,000 other income) owes £119,280.
On a £500,000 gain CGT is effectively 24% of everything above the allowance: £119,280 for a seller on £55,000, or 23.9%. For a business owner the number that matters is BADR: £500,000 is exactly the lifetime limit that applies from 6 April 2027.8
Which rate does a £500,000 gain pay at different incomes?
| Other income | Band left | At 18% | At 24% | CGT |
|---|---|---|---|---|
| £20,000 | £30,270 | £30,270 | £466,730 | £117,463.80 |
| £35,000 | £15,270 | £15,270 | £481,730 | £118,363.80 |
| £45,000 | £5,270 | £5,270 | £491,730 | £118,963.80 |
| £55,000 | £0 | £0 | £497,000 | £119,280 |
The basic-rate band is worth £2,262 at most, 1.9% of the higher-rate bill. The table barely moves between incomes because the band is a fixed amount and the gain is not.1
This page sits right at the £500,000 limit that applies from 6 April 2027. With BADR on a sale before that date, the report engine charges £1,800 on the next £10,000 of qualifying gain; on a sale from 6 April 2027 it charges £2,220: the whole £10,000 is above the new limit and taxed at 24%, softened only because the £3,000 allowance then comes off that 24% slice instead of the 18% one.8
Can you pay less on a £500,000 gain?
| Option | CGT | Saving |
|---|---|---|
| Sell it all in 2026/27 | £119,280 | - |
| Half before 6 April 2027, half after | £118,560 | £720 |
| Half given first to a spouse with no income | £116,298 | £2,982 |
| Half given first to a spouse earning £35,000 | £117,643.80 | £1,636.20 |
| £10,000 gross pension contribution | £118,963.80 | £316.20 |
| £20,000 gross pension contribution | £118,363.80 | £916.20 |
Selling before or after 6 April 2027
BADR before and after 6 April 2027: with no earlier claims the report engine gives £89,460 either side of the date, because the whole gain fits within £500,000 as well as within £1 million. Someone who has used BADR before is in a different position: earlier claims count towards the lifetime limit,5 so after 6 April 2027 less of this gain could qualify.
Giving half to a spouse or civil partner
A spouse with no income saves £2,982.2 More significant at this size: each spouse who owns qualifying shares and meets the conditions has their own BADR lifetime limit.5
Pensions, ISAs and reliefs
BADR saves £29,820 on this gain for a seller on £55,000.5 If the asset is business property you are replacing, Business Asset Rollover Relief can delay the tax instead.9 Losses still reduce the gain pound for pound, worth £240 per £1,000 at 24%.6
Reporting and paying the tax
Report on your 2026/27 return and pay by 31 January 2028.3 Late payment brings interest from the due date.7 A UK property sale has its 60-day return and payment instead.4 A BADR claim is made on the tax return or with Section A of helpsheet HS275, and the deadline is 31 January in the second year after the tax year of the sale: 31 January 2029 for a 2026/27 disposal.10 Keep the sale agreement, completion statement and the evidence for the original cost; at this size they are what HMRC would ask to see.
Your own figures: use the full calculator → for your sale price, costs, losses and income.
CGT on other gain amounts
Frequently asked questions
What share of a £500,000 gain goes in CGT without reliefs?
23.9% for a seller on £55,000 (£119,280) and 23.7% on £35,000 (£118,363.80), after the £3,000 allowance.
Is £500,000 the new BADR limit?
Yes, for qualifying disposals on or after 6 April 2027 (Budget 2026). It is £1 million before then.
With BADR, what is the tax on £500,000?
£89,460 for a seller on £55,000 with no earlier claims, against £119,280 without the relief.
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
- Report and pay CGT: if you sold a UK property on or after 6 April 2020 www.gov.uk/report-and-pay-your-capital-gains-tax/if-you-sold-a-property-in-the-uk-on-or-after-6-april-2020
- Business Asset Disposal Relief www.gov.uk/business-asset-disposal-relief
- Capital Gains Tax: losses www.gov.uk/capital-gains-tax/losses
- HMRC interest rates for late and early payments www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates
- 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
- Business Asset Disposal Relief: how to claim www.gov.uk/business-asset-disposal-relief/how-to-claim