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Tax year 2026/27 Last reviewed: 18 October 2026
UK Capital Gains Tax 2026/27: rates, allowance and reliefs
For 2026/27 you pay Capital Gains Tax only on gains above the £3,000 annual exempt amount. The rate is 18% on the part of your gain that falls within your basic rate band and 24% on the rest. If you sell UK residential property and owe tax, you must report and pay within 60 days of completion.
Capital Gains Tax is charged on the profit when you sell, give away or swap something that has gone up in value, such as shares, a second home or cryptoassets. The tax is on the gain, not on the money you receive. If you are selling a business, start with Business Asset Disposal Relief. Your income decides whether 18% or 24% applies, so read this alongside our Income Tax guide.
Key takeaways
- The annual exempt amount is £3,000 in 2026/27. It was also £3,000 in 2024/25 and 2025/26, down from £6,000 in 2023/24 and £12,300 in 2022/23.
- Individuals pay 18% on gains within their unused basic rate band and 24% on the rest. Trustees and personal representatives pay 24%.
- Since 30 October 2024, residential property and other assets such as shares are taxed at the same 18% and 24% rates.
- You must report and pay any Capital Gains Tax due on UK residential property within 60 days of completion.
- Business Asset Disposal Relief and Investors' Relief are both charged at 18% for disposals from 6 April 2026. Each has a £1 million lifetime limit.
- Your main home is usually free of Capital Gains Tax through Private Residence Relief. Spouses and civil partners can usually transfer assets to each other with no gain or loss.
- Gains on investments inside an ISA are free of Capital Gains Tax.
- For disposals from 26 November 2025, Employee Ownership Trust relief covers half of the gain. From 6 April 2026, carried interest is taxed as income instead.
What do you pay Capital Gains Tax on?
You pay Capital Gains Tax on the gain when you sell, give away, swap or receive compensation for an asset that has gone up in value. Chargeable assets include shares outside an ISA, property that is not your main home, business assets, cryptoassets and most personal possessions worth £6,000 or more, apart from your car.
ISAs, UK government gilts, Premium Bonds and betting, lottery or pools winnings are free of Capital Gains Tax, according to GOV.UK. Gifts to your spouse, civil partner or a charity are not usually taxed.
Is your main home exempt?
You do not pay Capital Gains Tax when you sell your home if all of the following apply. You then get Private Residence Relief automatically.
- You have one home and you lived in it as your main home for all the time you owned it.
- You have not let part of it out. Having a lodger does not count as letting.
- You have not used part of it only for business.
- The grounds, including all buildings, are under 5,000 square metres (just over an acre).
- You did not buy it just to make a gain.
If any of these do not apply you may owe some tax. You always get relief for the last 9 months before you sell. For example, if you owned a home for 20 years and were away for 5 of them, outside the periods that always qualify, the gain that gets relief falls by 25%. Married couples and civil partners can only count one property as their main home at any one time. Read the GOV.UK guide to selling your home.
What happens when you give an asset away?
If you give an asset to anyone other than your spouse, civil partner or a charity, the normal rules apply. You work out the gain using the market value on the date of the gift, even if you receive nothing. Suppose you give your daughter a buy-to-let worth £250,000 that cost you £150,000. The gain is £100,000. After the £3,000 allowance, £97,000 is taxable, and at 24% the bill is £23,280.
You do not pay Capital Gains Tax on assets you give or sell to your husband, wife or civil partner, unless you separated and did not live together at all in that tax year, or you gave them goods for their business to sell on. If they later sell the asset, their gain is worked out from the value when you first owned it. Hold-over Relief can defer the gain on some gifts, such as gifts of business assets. See HMRC helpsheet HS295.
How is Capital Gains Tax worked out on an inherited asset?
When someone dies, the estate usually pays any Inheritance Tax. You only work out Capital Gains Tax if you later sell the asset you inherited. HMRC treats you as having acquired it at its market value on the date of death. Say a property was worth £300,000 at death and you sell it for £325,000. The gain is £25,000. After the allowance, £22,000 is taxable, and at 24% the bill is £5,280. Our Inheritance Tax guide covers the estate side.
How are cryptoassets taxed?
HMRC treats cryptoassets as chargeable assets. A disposal includes selling tokens, exchanging them for a different type of token, using them to pay for goods or services, and giving them to someone other than your spouse, civil partner or a charity. Moving tokens between wallets you own is not a disposal. You group each type of token into a pool and work out an average cost. Tokens you buy on the same day as a sale, or within 30 days after it, are matched with that sale instead. NFTs are not pooled. Read HMRC's guidance on selling cryptoassets.
What are the Capital Gains Tax rates for 2026/27?
For 2026/27 the Capital Gains Tax rates for individuals are 18% and 24%, according to GOV.UK. Basic rate taxpayers pay 18% on gains within their basic rate band and 24% on any gains above it. Higher and additional rate taxpayers pay 24%. Trustees and personal representatives pay 24%.
| Who | Rate |
|---|---|
| Individuals, on gains within the unused basic rate band | 18% |
| Individuals, on gains above the basic rate band, and higher or additional rate taxpayers | 24% |
| Trustees | 24% |
| Personal representatives of someone who has died | 24% |
| Gains that qualify for Business Asset Disposal Relief or Investors' Relief | 18% |
Source: GOV.UK, Capital Gains Tax rates and allowances.
How have the rates changed since 2024?
| Gains made | Most assets | Residential property | Business Asset Disposal Relief and Investors' Relief |
|---|---|---|---|
| 6 April 2019 to 5 April 2024 | 10% and 20% | 18% and 28% | 10% |
| 6 April 2024 to 29 October 2024 | 10% and 20% | 18% and 24% | 10% |
| 30 October 2024 to 5 April 2025 | 18% and 24% | 18% and 24% | 10% |
| 6 April 2025 to 5 April 2026 | 18% and 24% | 18% and 24% | 14% |
| 6 April 2026 onwards | 18% and 24% | 18% and 24% | 18% |
Source: GOV.UK, Capital Gains Tax rates and allowances. Trustees and personal representatives pay 24% from 30 October 2024. The first rate in each pair applies within the basic rate band and the second above it.
The rates for most gains in 2026/27 are the same as in 2025/26. Only the Business Asset Disposal Relief and Investors' Relief rate rose, from 14% to 18%.
What happens to carried interest?
From 6 April 2026, carried interest is no longer a capital gain. GOV.UK says you pay Income Tax and National Insurance contributions on it instead. Section 58 of the Finance Act 2026 taxes 72.5% of qualifying carried interest as trading profit. In 2025/26 the Capital Gains Tax rate on carried interest was 32%.
How much is the Capital Gains Tax allowance?
The Capital Gains Tax allowance, called the annual exempt amount, is £3,000 for individuals in 2026/27, and £1,500 for most trustees. You only pay tax on your total gains for the tax year above that amount, after deducting losses. It is the same figure as in 2024/25 and 2025/26.
| Tax year | Individuals | Most trustees |
|---|---|---|
| 2026/27 | £3,000 | £1,500 |
| 2025/26 | £3,000 | £1,500 |
| 2024/25 | £3,000 | £1,500 |
| 2023/24 | £6,000 | £3,000 |
| 2022/23 | £12,300 | £6,150 |
| 2021/22 | £12,300 | £6,150 |
Source: GOV.UK, Capital Gains Tax rates and allowances. The allowance has fallen by £9,300 since 2022/23.
What are the rules for using the allowance?
- The allowance covers one tax year only. If you do not use it, you cannot carry it forward or back.
- Spouses and civil partners each have their own £3,000. If you own an asset jointly, you work out the gain on your own share.
- Allowable losses from the same tax year come off first, even if that takes your net gains below £3,000. Losses from earlier years are then used only to bring your gains down to the allowance.
- You can set the allowance against the gains that would be taxed at the highest rate.
Sources: GOV.UK, Capital Gains Tax and HMRC Capital Gains Manual CG18000.
Do you have to report gains below the allowance?
If you are registered for Self Assessment, you must also report your gains on your tax return when the total you sold your assets for was more than £50,000, even if your gain is under £3,000. This applies from 2023/24. Before that the test was four times the allowance. Where losses bring your gains under £3,000, you must still complete the capital gains pages of your Self Assessment return if your gains before losses are over £3,000, according to HMRC's 2026 SA108 notes. If you are a UK resident with total gains below the allowance, you do not need to report a UK property sale online.
How do you report and pay Capital Gains Tax on UK property?
You must report and pay any Capital Gains Tax due on UK residential property within 60 days of completing the sale, according to GOV.UK. Use a Capital Gains Tax on UK property account. If you are registered for Self Assessment, you must also include the sale on your tax return. Late reports can bring interest and penalties.
When does the 60-day rule apply?
The 60-day limit applies to UK residential property sold with a completion date on or after 27 October 2021. For completions between 6 April 2020 and 26 October 2021 the limit was 30 days. Joint owners each report their own gain or loss. If you are not a UK resident, you must report every sale of UK property or land, even when there is no tax to pay.
Read the GOV.UK guide to reporting and paying Capital Gains Tax and our guide to HMRC rules and compliance.
What are the penalties for reporting late?
Under Schedule 55 to the Finance Act 2009, a UK property return that is late gets a £100 penalty. If it is still outstanding after 3 months, HMRC can charge £10 a day for up to 90 days. After 6 months the penalty is the greater of 5% of the tax due and £300, and the same applies after 12 months. GOV.UK also says you may have to pay interest and a penalty if you do not pay on time.
Worked example: selling a buy-to-let
| Item | Amount |
|---|---|
| Sale price | £320,000 |
| Purchase price | −£200,000 |
| Improvements (an extension) | −£15,000 |
| Buying and selling costs | −£8,000 |
| Gain before the allowance | £97,000 |
| Annual exempt amount | −£3,000 |
| Taxable gain | £94,000 |
| Tax at 24% | £22,560 |
This assumes a higher rate taxpayer with no other gains. The tax is due within 60 days of completion, not in January.
You can deduct the costs of buying, selling or improving the property, including estate agents' and solicitors' fees, Stamp Duty and improvement works such as an extension. Normal maintenance such as decorating does not count, and neither does interest on a loan to buy the property.
How do you report other gains?
For shares and other assets you can report in a Self Assessment return for the tax year after the sale, or use HMRC's real time Capital Gains Tax service if you are eligible. For gains made in 2025/26, report through the real time service by 31 December 2026 and pay by 31 January 2027. A 2025/26 Self Assessment return must be filed online by 11:59pm on 31 January 2027, or on paper by 31 October 2026.
How do Business Asset Disposal Relief and Investors' Relief work?
Business Asset Disposal Relief charges qualifying gains at 18% for disposals from 6 April 2026, up from 14% in 2025/26 and 10% before that. You can claim relief on £1 million of gains over your lifetime. You normally need to have owned the business, or been an employee or officer of the company, for at least 2 years.
Who qualifies for Business Asset Disposal Relief?
GOV.UK sets out the conditions. For at least 2 years up to the date of sale:
- If you sell all or part of a business, you must be a sole trader or business partner and have owned the business. If you close it, you must dispose of the assets within 3 years.
- If you sell shares, you must be an employee or office holder of the company, and its main activities must be trading.
- Unless the shares came from an Enterprise Management Incentive, the company must be your personal company. That means you hold at least 5% of the shares and voting rights and are entitled to at least 5% of the profits available for distribution and of the assets on a winding up, or of the sale proceeds.
As an example, a sole trader sells a business for a qualifying gain of £400,000. After the £3,000 allowance, £397,000 is taxed at 18%, which is £71,460. At 24% it would be £95,280. You claim through your Self Assessment return or the helpsheet HS275. For disposals in 2025/26 the claim deadline is 31 January 2028. Read the GOV.UK guide to Business Asset Disposal Relief and our planning and strategies guide.
What is Investors' Relief?
Investors' Relief applies to shares in unlisted trading companies that you subscribed for in cash and have owned for at least 3 years. Neither you nor anyone connected with you can be an officer or employee of the company, and the shares must have been issued on or after 17 March 2016. The lifetime limit is £1 million for disposals on or after 30 October 2024, down from £10 million. The rate is 18% for disposals from 6 April 2026, 14% in 2025/26 and 10% before that. Read HMRC helpsheet HS308.
What changed for Employee Ownership Trusts and incorporation relief?
For disposals to an Employee Ownership Trust on or after 26 November 2025, only 50% of the gain is a chargeable gain. The other half is exempt, and Business Asset Disposal Relief and Investors' Relief are not available on that disposal. HMRC's example is a £5 million gain on which £2.5 million is exempt. Section 35 of the Finance Act 2026 makes the change. Separately, incorporation relief must be claimed for businesses transferred to a company on or after 6 April 2026. The claim is due by the first anniversary of the 31 January after the tax year of the transfer (Finance Act 2026, section 39).
How can you legally reduce your Capital Gains Tax bill?
You can reduce a Capital Gains Tax bill by using your £3,000 allowance every year, moving investments into an ISA, transferring assets to your spouse or civil partner before a sale, claiming losses, and making pension contributions or Gift Aid donations that widen your basic rate band.
Bed and ISA
A Bed and ISA moves investments you hold outside an ISA into one. You sell enough to use your £3,000 allowance, pay the proceeds into a stocks and shares ISA and buy the investments again inside it. The ISA limit is £20,000 in 2026/27, and GOV.UK says you do not pay tax on income or capital gains from investments in an ISA. If you buy the same shares back outside an ISA within 30 days, the sale is matched with that purchase, which normally reduces or removes the gain or loss. See our guide to stocks and shares ISAs.
Transfers between spouses and civil partners
Assets you give or sell to your spouse or civil partner are treated as giving no gain or loss, so a transfer before a sale lets each of you use a £3,000 allowance and your own basic rate band.
Suppose a couple have a £30,000 gain on shares. If the partner who pays 24% sells alone, the tax is £6,480. If they first give half the shares to a partner with no other income, each has a £15,000 gain and £12,000 is taxable. The higher rate partner pays £2,880 and the other pays £2,160 at 18%. That is £5,040 in total, which is £1,440 less. The transfer has to be complete before the sale, so take advice if a sale is close. See our family and marriage tax guide.
Capital losses
Allowable losses are deducted from gains made in the same tax year, then losses from earlier years can bring your gains down to the allowance. You must report a loss to HMRC, and you can claim it up to 4 years after the end of the tax year of the disposal. Unused losses carry forward.
For example, a £10,000 gain and a £5,000 loss leave a net gain of £5,000. After the allowance, £2,000 is taxable and the tax at 24% is £480. Without the loss it would be £1,680, so the loss saves £1,200. If losses took the net gain below £3,000, part of that year's allowance would be wasted. A £10,000 gain and an £8,000 loss leave £2,000, so £1,000 of the allowance goes unused.
Share matching can change the result. A sale is matched first with shares bought the same day, then with shares of the same class bought within the next 30 days, and then with your Section 104 pool of other shares at average cost. This normally reduces or removes the gain or loss. Read HMRC's Capital Gains Manual CG51555.
Pension contributions and Gift Aid
For Capital Gains Tax, the basic rate band is the Income Tax basic rate limit of £37,700, and the part of it your income has not used is taxed at 18%. HMRC's Capital Gains Manual says the band can be extended in two circumstances: a Gift Aid donation, and a pension contribution that gets relief at source. Both raise the limit by the gross amount. For a pension contribution this applies if you pay higher rate tax and make a claim. Net pay and salary sacrifice contributions do not extend the band. They lower your income instead, so the unused band is measured against a lower figure. Read HMRC Capital Gains Manual CG21204.
Say someone has £55,000 of income and a £13,000 gain, which leaves £10,000 taxable after the allowance. Their taxable income of £42,430 uses the whole band, so the tax is £2,400 at 24%. A personal pension contribution of £8,000, which the provider grosses up to £10,000, lifts the limit to £47,700 and leaves £5,270 unused. Then £5,270 is taxed at 18% (£949) and £4,730 at 24% (£1,135), so the tax falls to £2,084, a saving of £316. The contribution also earns its own Income Tax relief. The legislation is Income Tax Act 2007 section 10 and Taxation of Chargeable Gains Act 1992 section 1J.
How do your income and gain decide your rate?
HMRC adds your taxable gain, after the £3,000 allowance, on top of your taxable income. The part that falls within the basic rate band of £37,700 is taxed at 18% and anything above it at 24%. If any of your income is already taxed at a higher rate, all your gains are taxed at 24%.
Taxable income is your income minus your Personal Allowance and any other Income Tax reliefs. GOV.UK gives two examples for 2026/27. With taxable income of £20,000 and gains of £12,600, the combined amount is £29,600, so the £1,728 bill is all at 18%. With the same income and gains of £52,600, £17,700 is taxed at 18% and £31,900 at 24%, which gives £10,842.
Worked example: a £40,000 salary and a £20,000 gain on shares
| Step | Amount |
|---|---|
| Salary | £40,000 |
| Personal Allowance | −£12,570 |
| Taxable income | £27,430 |
| Basic rate band | £37,700 |
| Unused basic rate band | £10,270 |
| Gain on shares | £20,000 |
| Annual exempt amount | −£3,000 |
| Taxable gain | £17,000 |
| £10,270 at 18% | £1,849 |
| £6,730 at 24% | £1,615 |
| Capital Gains Tax | £3,464 |
Each line is rounded to the nearest pound. Source for the method: GOV.UK, Capital Gains Tax rates. Our Income Tax guide shows how the bands work.
How can timing change the rate?
A year with lower income leaves more of the basic rate band unused, so more of a gain is taxed at 18%. If you can choose when to sell, for example by selling shares in stages either side of 5 April, you use two annual exempt amounts (£6,000 in total) and two years of basic rate band.
Frequently asked questions about Capital Gains Tax
Do I pay Capital Gains Tax when I sell my main home?
Usually not. GOV.UK says you get Private Residence Relief automatically if you lived in it as your main home for all the time you owned it, you have not let part of it out, you have not used part of it only for business, and the grounds are under 5,000 square metres. A lodger does not count as letting.
How long do I have to report and pay Capital Gains Tax on a property sale?
You must report and pay any Capital Gains Tax due on UK residential property within 60 days of completion. A late return gets a £100 penalty, with further penalties possible after 3, 6 and 12 months. GOV.UK also says you may have to pay interest and a penalty if you do not pay on time.
Are cryptoassets subject to Capital Gains Tax?
Yes. Selling tokens, swapping them for a different token, spending them or giving them to someone other than your spouse, civil partner or a charity counts as a disposal. Moving tokens between your own wallets does not. You pool each type of token to work out its cost, unless you buy within 30 days of selling.
How is Capital Gains Tax worked out on an inherited property?
You are treated as acquiring the property at its market value on the date of death. If it was worth £300,000 then and you sell it for £325,000, the gain is £25,000. After the £3,000 allowance, £22,000 is taxable, and at 24% the Capital Gains Tax is £5,280.
What happens if I give an asset to my child?
HMRC treats a gift to anyone other than your spouse, civil partner or a charity as a disposal at market value, even though you receive nothing. If you give away a £250,000 buy-to-let that cost £150,000, the gain is £100,000. After the allowance, £97,000 is taxable and the tax at 24% is £23,280.
Can I use losses to reduce Capital Gains Tax?
Yes. You must report a loss to HMRC, which you can do up to 4 years after the end of the tax year of the disposal. Losses from the same year come off your gains first, even if that takes them below £3,000. Losses from earlier years then bring your gains down to the allowance, and any left carry forward.
Who can claim Business Asset Disposal Relief?
Sole traders and business partners who have owned the business for at least 2 years can claim, as can employees or office holders selling shares in their trading company. A personal company needs at least 5% of the shares and voting rights. The rate is 18% from 6 April 2026, on £1 million of lifetime gains.
Do I have to report gains below the £3,000 allowance?
You must report and pay Capital Gains Tax if your total gains after losses are above the £3,000 allowance, according to GOV.UK. If you are registered for Self Assessment, you must also report on your tax return when the total you sold your assets for was more than £50,000, even if your gain is below the allowance.
Where can you read more?
UK tax hub
Every UK tax type in one place.
Income Tax
Your taxable income decides whether 18% or 24% applies to your gains.
Planning and strategies
Pensions, salary sacrifice and business exit planning.
HMRC rules and compliance
Self Assessment deadlines, Making Tax Digital and penalties.
Property and landlord tax
Rental income, allowances and selling a rental property.
Family and marriage tax
Marriage Allowance and Child Benefit.
Inheritance Tax and estate planning
Thresholds, reliefs and gifts.
Stocks and shares ISAs
Keep gains and dividends tax-free.
Primary sources
- GOV.UK: Capital Gains Tax
- GOV.UK: Capital Gains Tax rates and allowances
- GOV.UK: Capital Gains Tax rates
- GOV.UK: Report and pay your Capital Gains Tax
- GOV.UK: Tax when you sell your home
- GOV.UK: Tax when you sell property
- GOV.UK: Business Asset Disposal Relief
- HMRC helpsheet HS308: Investors' Relief 2026
- HMRC helpsheet HS277: Employee Ownership Trusts and Capital Gains Tax
- GOV.UK: Check if you need to pay tax when you sell cryptoassets
- GOV.UK: Self Assessment deadlines
- GOV.UK: Individual Savings Accounts
- HMRC Self Assessment capital gains summary notes (SA108) 2026
- HMRC Capital Gains Manual CG18000: annual exempt amount
- HMRC Capital Gains Manual CG21500: losses
- HMRC Capital Gains Manual CG21204: available basic rate band
- legislation.gov.uk: Finance Act 2026 section 35
- legislation.gov.uk: Taxation of Chargeable Gains Act 1992 section 1I
What should you check before you sell an asset?
Before you sell, work out the gain, your taxable income and how much of the £3,000 allowance you have left. If you sell UK residential property, report and pay any tax within 60 days of completion. For gains made in 2025/26, report through the real time service by 31 December 2026, or file Self Assessment online by 31 January 2027.
Work out the gain on each sale: the sale price less what you paid and the costs of buying, selling and improving.
Check how much of the £3,000 allowance you have used. The 2026/27 tax year ends on 5 April 2027.
If you are selling UK residential property, report and pay any tax due within 60 days of completion.
If you sold assets in 2025/26, file your Self Assessment return online and pay by 31 January 2027, or report through the real time service by 31 December 2026 and pay by 31 January 2027.
If you have capital losses, report them to HMRC within 4 years of the end of the tax year of the disposal.
If you are selling a business, check the Business Asset Disposal Relief conditions: 2 years of ownership and the £1 million lifetime limit.
If you hold investments outside an ISA, check whether your £20,000 ISA allowance could shelter future gains.
TaxYZ provides educational information only and is not regulated by the FCA or ICAEW. All rates, allowances and thresholds reflect the 2026/27 tax year as published by GOV.UK and HMRC. This page does not constitute tax, legal or financial advice. Please consult a qualified tax adviser before making asset disposal decisions based on this content.