What is the CGT annual exempt amount for 2026/27?

The annual exempt amount is £3,000 for 2026/27, unchanged from 2024/25. Gains below this threshold are tax-free. Unused allowance cannot be carried forward.

What are the CGT rates for 2026/27?

For shares and most assets: 18% for basic rate taxpayers, 24% for higher/additional rate taxpayers. For residential property: 18% basic rate, 24% higher rate. Business Asset Disposal Relief rate is 14% for 2026/27.

How does income affect CGT rates?

Your CGT rate depends on your total taxable income plus the gain. If your income and gain together fall within the basic rate band (up to £50,270), the lower 18% rate applies to the portion within the band. Anything above gets the higher 24% rate.

UK tax guide · 2026/27

Capital Gains Tax UK 2026/27

Capital Gains Tax (CGT) is charged on profit from selling assets — shares, investment property, a business, or other investments. The rate depends on the type of asset and your income level. The annual exempt amount is £3,000 in 2026/27.

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2026/27 CGT rates

Asset type	Basic rate taxpayer	Higher/additional rate
Shares & investments	18%	24%
Residential property	18%	24%
Business assets (BADR)	14% (lifetime limit £1m)
Annual exempt amount	£3,000

Note: Rates for shares and property were aligned at the Autumn 2024 budget. Previously residential property was taxed at higher rates than other assets — this distinction was removed.

How your income affects the rate

CGT doesn't sit in isolation. It stacks on top of your income for the year. The portion of your gain that falls within the basic rate band (income + gain ≤ £50,270) is taxed at 18%. The rest at 24%.

Scenario	Taxable gain	CGT at 18%	CGT at 24%	Total CGT
£30k income, £20k gain on shares	£17,000	£3,060	—	£3,060
£45k income, £20k gain on shares	£17,000	£936	£2,760	£3,696
£60k income, £20k gain on shares	£17,000	—	£4,080	£4,080

Gain = proceeds − cost − annual exempt amount (£3,000). Examples assume no other reliefs.

What counts as the gain

The taxable gain is proceeds minus allowable costs — not just the sale price. Allowable costs include: original purchase price, acquisition costs (stamp duty, legal fees), improvement costs (for property), and disposal costs (agent fees, legal fees on sale).

Common mistake: Using the full sale price as the gain. If you bought shares for £50,000 and sold for £80,000, the gain is £30,000 — not £80,000. After the £3,000 exempt amount, CGT is calculated on £27,000.

Planning considerations

Use your annual exempt amount: £3,000 per person, per year. Couples can crystallise £6,000 of gains tax-free between them.
Bed and ISA: Sell assets, crystallise up to £3,000 of gains, rebuy within an ISA wrapper. Future gains in the ISA are tax-free.
Timing: If you're a higher rate taxpayer now but expect lower income next year, deferring a disposal to the next tax year can save 6% on the gain.
Loss relief: Capital losses in the same tax year reduce your gains. Unused losses can be carried forward to future years — register them even if no tax is due.
Transfers between spouses: Assets transferred between spouses/civil partners are at no gain/no loss. This can redistribute gains to use a lower-rate partner's exempt amount or basic rate band.

Frequently asked questions

Do I need to report CGT if I'm under the exempt amount?

If your total gains for the year are less than £3,000 (the annual exempt amount) and your total proceeds are less than £50,000, you generally don't need to report to HMRC. If proceeds exceed £50,000 you must report via Self Assessment even if the gain is below the exempt amount.

How long do I have to pay CGT on property?

For UK residential property sales, CGT must be reported and paid within 60 days of completion using HMRC's online property disposal return. For other assets, CGT is reported and paid via your Self Assessment tax return for the relevant tax year — due 31 January after the tax year ends.

Is my main home subject to CGT?

Your main home is generally exempt from CGT under Private Residence Relief (PRR) if it has been your only or main residence throughout the period of ownership. Periods of non-occupation (e.g. letting the property) may reduce the relief, though the final 9 months always qualify regardless.

What is Business Asset Disposal Relief?

Business Asset Disposal Relief (BADR, formerly Entrepreneurs' Relief) reduces CGT to 14% on qualifying business asset disposals — including selling shares in your own company if you've held at least 5% for 2+ years and worked in the business. There's a £1 million lifetime limit on gains qualifying for BADR.