Tax

Capital Gains Tax Allowance 2026/27 — Rates, Thresholds, and How to Calculate

The Capital Gains Tax annual exempt amount, rates, and how to calculate your CGT bill for the 2026/27 tax year — including shares, property, and crypto.

· 4 min read

Capital Gains Tax (CGT) is charged on the profit you make when you sell or dispose of an asset that has increased in value. Here’s everything you need to know for the 2026/27 tax year.

CGT Annual Exempt Amount

Tax year Annual exempt amount
2022/23 £12,300
2023/24 £6,000
2024/25 £3,000
2025/26 £3,000
2026/27 £3,000

The first £3,000 of gains in the tax year is tax-free. Only gains above this amount are taxed.

CGT Rates for 2026/27

Asset type Basic rate taxpayer Higher/additional rate taxpayer
Shares, funds, ETFs 10% 20%
Cryptocurrency 10% 20%
Personal possessions (over £6,000) 10% 20%
Business assets (not qualifying for BADR) 10% 20%
Residential property (not main home) 18% 24%
Business assets qualifying for BADR 10% 10%
Investors’ Relief qualifying assets 10% 10%

How to Calculate Your CGT

Step Calculation
1 Sale price of the asset
2 Minus purchase price (what you originally paid)
3 Minus allowable costs (buying/selling fees, stamp duty, improvement costs)
4 = Total gain
5 Minus annual exempt amount (£3,000)
6 = Taxable gain
7 Apply the correct CGT rate based on your income tax band

Example: Selling Shares

Item Amount
Sale price £25,000
Purchase price £15,000
Dealing fees (buy + sell) £50
Gain £25,000 – £15,000 – £50 = £9,950
Annual exempt amount –£3,000
Taxable gain £6,950
Basic rate taxpayer (10%) £695 CGT to pay
Higher rate taxpayer (20%) £1,390 CGT to pay

Example: Selling a Second Home

Item Amount
Sale price £300,000
Purchase price (2015) £200,000
Stamp duty paid on purchase £1,500
Solicitor fees (buy + sell) £3,000
New kitchen (capital improvement) £8,000
Gain £300,000 – £200,000 – £1,500 – £3,000 – £8,000 = £87,500
Annual exempt amount –£3,000
Taxable gain £84,500
Basic rate (18%) On the portion within your basic rate band
Higher rate (24%) On the portion above £50,270 total income + gain

Which Rate Do You Pay?

Your total taxable income (2026/27) Add your gain Which rate?
Under £50,270 Gain fits within remaining basic rate band 10% (shares) or 18% (property)
Under £50,270 Gain pushes you above £50,270 Split — basic rate on portion below threshold, higher rate on the rest
Over £50,270 All gains 20% (shares) or 24% (property)

Split Rate Example

Detail Amount
Taxable income £45,000
Remaining basic rate band £50,270 – £45,000 = £5,270
Taxable gain (shares) £10,000
Gain taxed at 10% £5,270 × 10% = £527
Gain taxed at 20% £4,730 × 20% = £946
Total CGT £1,473

Assets Exempt from CGT

Asset Why it’s exempt
Your main home (PPR) Private Residence Relief
ISA investments Tax-free wrapper
Pension investments Tax-free wrapper
Personal possessions worth under £6,000 each Chattels exemption
Your car Always exempt (wasting asset)
UK government bonds (gilts) Exempt from CGT
Premium Bond prizes Not subject to CGT or income tax
Gifts to your spouse/civil partner No CGT on transfer (but they inherit your base cost)
Gifts to charity Exempt from CGT
Betting and lottery winnings Not subject to CGT

How to Reduce Your CGT Bill

Strategy How it works
Use your annual exempt amount £3,000 per person per year — use it or lose it
Transfer assets to spouse before selling Each spouse has their own £3,000 allowance
Use your ISA allowance £20,000/year of investments sheltered from CGT
Bed and ISA Sell investments outside ISA, immediately rebuy inside ISA
Offset losses Capital losses reduce your taxable gains
Carry forward losses Unused losses from previous years can be used
Time disposals across tax years Sell some in March, some in April to use two years’ allowances
Deduct all allowable costs Stamp duty, fees, improvements — reduces the gain
Business Asset Disposal Relief 10% rate on qualifying business assets (lifetime limit £1 million)
Hold assets until death CGT is wiped on death — heirs inherit at market value

Reporting and Paying CGT

Asset Reporting deadline Payment deadline
UK residential property 60 days from completion 60 days from completion
Shares, crypto, other assets Self Assessment tax return (31 January following the tax year) 31 January following the tax year

How to Report

Method For which disposals
CGT on UK Property Account (online) UK property — within 60 days
Self Assessment tax return All disposals — annual (Capital Gains summary pages)
Real Time transactions over £50,000 Must be reported on Self Assessment even if no tax due

Key Thresholds to Remember (2026/27)

Threshold Amount
Annual exempt amount £3,000
Basic rate band (income) £12,571–£50,270
Reporting threshold (total proceeds) £50,000 (must report even if no gain)
BADR lifetime limit £1,000,000
Chattels exemption £6,000 per item
Property reporting deadline 60 days