CGT on Gift Calculator 2025/26 — Capital Gains When Giving Assets Away
Calculate CGT when gifting assets. HMRC treats gifts as sold at market value — CGT at 18%/24% may apply. Spouse exemption, holdover relief for business assets, and 60-day reporting rules.
CGT on Gift Calculator 2025/26
When you give away an asset, HMRC treats it as sold at market value — CGT may be due even though you received nothing.
Frequently Asked Questions
Do I pay CGT when I give something away?
Yes — when you give an asset to someone other than your spouse or civil partner, HMRC treats it as if you sold it at its market value on the date of the gift. If the market value exceeds your original cost, CGT is charged on the difference (less the annual exempt amount of £3,000 for 2025/26), even though you received no money.
What is the CGT rate on gifts in 2025/26?
CGT rates from October 2024: 18% (basic rate taxpayer) or 24% (higher/additional rate taxpayer) for most assets including shares and property. Previously, non-residential assets were 10%/20% before October 2024. The rate depends on the donor's total income and gains in the year of the gift.
Are gifts to spouses or civil partners taxable?
No — gifts between spouses and civil partners (living together) are treated as 'no gain / no loss' transfers. No CGT arises at the time of the gift. However, the recipient takes the asset at the donor's original base cost, so CGT will crystallise when the recipient sells or gifts to a third party.
What is holdover relief and when does it apply?
Holdover relief (s.165 TCGA 1992) allows the CGT gain on a gift of qualifying business assets to be deferred ('held over') into the recipient's base cost. The donor pays no CGT, but the recipient's base cost is reduced. Available for: shares in unquoted trading companies, sole trader / partnership business assets, agricultural property, and assets on which IHT is being charged (s.260 holdover).
What CGT rate applies to gifting a property?
For residential property, the CGT rate is 18% (basic rate) or 24% (higher rate) from October 2024. If you gift a property that you live in (your main home), principal private residence (PPR) relief may reduce or eliminate the gain. If it's a rental or second home, no PPR relief applies.
Can I avoid CGT on a gift by claiming it's at arm's length?
No — gifts by definition are not arm's length transactions. HMRC uses market value rather than actual consideration for all gifts and transactions between connected persons (family, business partners). You cannot substitute a lower agreed price to reduce the gain.
Does the gift also trigger IHT?
If you give away cash or assets worth more than your £3,000 annual IHT exemption, the gift is a Potentially Exempt Transfer (PET). If you die within 7 years, IHT may apply on a tapered basis. Both CGT and IHT can apply to the same gift — though CGT paid can be deducted from the IHT calculation on chargeable gifts.
How do I report CGT on a gift?
Report on your Self Assessment tax return in the capital gains pages. For residential property gifts, you must also file a UK Property Return (30-day CGT return) within 60 days of completion. Non-residents gifting UK land must report within 60 days under NRCGT rules.