UK Capital Gains Tax Guide 2026/27 — Rates, Annual Exemption, & Strategies
Capital Gains Tax (CGT) is levied when you sell an asset at a profit. Understanding CGT rates, the annual exemption, and planning strategies can save significant tax on investment gains.
Correction notice (updated 30 July 2026). Earlier versions of this page gave the CGT rates as 10% and 20%, with a separate higher pair for residential property. Both statements are out of date. From 30 October 2024 the main rates became 18% and 24%, and they now apply to every asset class alike — shares, funds, crypto and residential property. There is no longer a distinct residential-property rate.
Annual Exempt Amount
For 2026/27, the annual CGT exemption is £3,000. Gains below this are not taxed; gains above it are taxed at 18% or 24% depending on where they land once stacked on your income (see below).
Example: Sell shares for a £10,000 profit
- Exempt: first £3,000
- Taxable gain: £10,000 – £3,000 = £7,000
- With £30,000 of income, the whole £7,000 sits inside the basic-rate band → £1,260 of CGT (£7,000 × 18%)
- With £60,000 of income, the basic-rate band is already full → £1,680 of CGT (£7,000 × 24%)
Same gain, same allowance, £420 of difference — the rate is a function of your income, not of the asset.
CGT Rates 2026/27
CGT is banded, not flat. Work out your taxable income, deduct the annual exempt amount from your gains, then stack the remaining gain on top of that income:
| Where the gain lands | Rate |
|---|---|
| Inside the basic-rate band (the first £37,700 of taxable income, i.e. income up to £50,270) | 18% |
| Above the basic-rate band | 24% |
A gain can straddle both. If part of your basic-rate band is unused, that part of the gain is charged at 18% and only the remainder at 24%. Set the annual exempt amount against the gains that would otherwise be charged at 24%.
These rates apply to all chargeable assets. The old split — 10%/20% for most assets and 18%/28% for residential property — ended on 29 October 2024. Trustees and personal representatives pay a flat 24%.
Business Asset Disposal Relief is the one remaining reduced rate: 18% on up to £1,000,000 of lifetime qualifying gains for disposals from 6 April 2026 (14% for 2025/26 disposals, 10% on or before 5 April 2025). Since 6 April 2026 it is worth 6 percentage points, not 14.
Note: CGT rates are still below the income tax rates that would apply to the same money as income (20%/40%/45%).
Qualifying Assets
Assets subject to CGT:
- Stocks & shares held outside an ISA or pension
- Investment property (not your main home)
- Cryptocurrency
- Antiques & collectibles
- Units in unit trusts and most corporate bonds that are not qualifying corporate bonds
Assets exempt from CGT:
- Main residence (Principal Private Residence Relief)
- ISA and pension holdings (tax-free wrapper)
- Premium Bonds
- UK government gilts and qualifying corporate bonds
- Shares held in an employer Share Incentive Plan
- Chattels worth £6,000 or under (antiques, jewellery)
Tax-Loss Harvesting
You can offset gains against losses within the same year. If losses exceed gains, you can carry forward to future years.
Strategy: Sell underperforming shares at a loss before 5 April to offset gains realised earlier in the same tax year.
Important — the UK does have a repurchase rule. If you buy back shares of the same class in the same company within 30 days of selling them, HMRC matches the sale against the repurchase rather than against your pooled cost. The loss you were trying to bank does not arise. There is no US-style "wash sale" wording in UK law, but the 30-day share identification rule has the same practical effect, so you cannot sell and immediately buy back the same holding. The usual workarounds are to wait 31 days, to repurchase inside an ISA or pension ("bed and ISA"), to have a spouse buy the equivalent holding, or to buy a similar-but-not-identical fund.
Planning Strategies
✓ Use the annual exemption every year — it cannot be carried forward; an unused exemption is gone on 6 April ✓ Straddle the tax year end — the UK tax year ends 5 April, so selling part of a holding in early April and the rest after 5 April uses two annual exemptions instead of one ✓ Time disposals for a low-income year — a gain stacked on a smaller income falls further inside the basic-rate band and is charged at 18% rather than 24% ✓ Harvest losses — realise losses to offset current gains; unused losses carry forward indefinitely once reported ✓ Gift appreciated assets to your spouse — transfers between spouses living together are no gain/no loss, so your spouse can use their own exemption and, if they are a basic-rate taxpayer, their own 18% band ✓ Hold in an ISA — gains inside an ISA are never chargeable, and there is nothing to report
Conclusion
With the £3,000 annual exemption and banded 18%/24% rates, strategic planning can minimise CGT. Use tax-loss harvesting, respect the 30-day repurchase rule, spread disposals across the 5 April year end, and maximise ISA usage for long-term investments. If you are selling a business rather than an investment, check whether Business Asset Disposal Relief applies — and check the rate for your actual completion date, because it changed twice in two years.