What is the CGT allowance for 2026-27?

The Capital Gains Tax annual exempt amount (allowance) for 2026-27 is £3,000. This is the amount of capital gains you can make tax-free each year. The allowance was reduced from £6,000 in 2023-24 and £12,300 before that. If you don't use your allowance, it doesn't carry over to the next year.

What is the capital gains tax rate in 2026?

For most assets, basic rate taxpayers pay 18% CGT and higher/additional rate taxpayers pay 24%. For carried interest, rates are 32% (basic) and 36% (higher). These rates were increased in the October 2024 Budget from the previous 10%/20% for non-property assets. Residential property gains remain at 18%/24%.

How do I calculate capital gains tax?

1) Calculate your gain (sale price minus purchase price minus costs), 2) Deduct your £3,000 annual allowance, 3) Add the remaining gain to your income, 4) Pay 18% on gains within the basic rate band and 24% on gains above it. Losses can be deducted before the allowance.

Do I pay capital gains tax on my home?

No, your main residence is exempt from CGT under Private Residence Relief (PRR). This applies to your primary home for the entire time you've lived there. If you've rented it out, been absent, or have very large grounds, partial CGT may apply. Second homes and buy-to-let properties are subject to CGT.

Capital Gains Tax Rates 2026-27 UK — CGT Calculator & Allowances | PocketWise

Capital Gains Tax (CGT) is charged on the profit when you sell or dispose of assets that have increased in value. Here’s everything you need to know for 2026-27.

CGT Rates 2026-27

Standard Rates (Most Assets)

Tax Band	CGT Rate
Basic rate (up to £37,700 taxable income)	18%
Higher rate (above £37,700)	24%
Additional rate	24%

Carried Interest Rates

Tax Band	CGT Rate
Basic rate	32%
Higher rate	36%

Note: These rates apply from 30 October 2024. Prior to this, non-property rates were 10%/20%.

How Your Tax Band Affects CGT

Your CGT rate depends on your total taxable income including the gain.

Your Income	Add Gain	CGT Rate on Gain
£30,000	£5,000	18% (within basic band)
£45,000	£10,000	Part 18%, part 24%
£60,000	£15,000	24% (all higher rate)

Annual Exempt Amount (Allowance)

Recent Changes

Tax Year	CGT Allowance
2026-27	£3,000
2025-26	£3,000
2024-25	£3,000
2023-24	£6,000
2022-23	£12,300

The allowance has dropped 75% since 2022-23.

Key Rules

Rule	Detail
Per person	Each person gets £3,000
Per year	Resets each tax year
Use it or lose it	Doesn’t carry over
Couples	£6,000 combined if both own asset

Calculating Capital Gains Tax

Step-by-Step Calculation

Step	Calculation
1	Sale price (or market value)
2	Minus purchase price
3	Minus allowable costs
4	Equals total gain
5	Minus losses (if any)
6	Minus annual exempt amount (£3,000)
7	Equals taxable gain
8	Apply CGT rate(s)

Allowable Costs

Deductible	Not Deductible
Purchase costs (stamp duty, legal fees)	Your time
Sale costs (estate agent, legal fees)	General maintenance
Improvement costs (extensions, renovations)	Interest on loans
Valuation fees	Insurance

Worked Examples

Example 1: Basic Rate Taxpayer Selling Shares

Item	Amount
Sale price	£50,000
Purchase price	£30,000
Dealing costs	£500
Gross gain	£19,500
Annual allowance	£3,000
Taxable gain	£16,500
CGT at 18%	£2,970

Example 2: Higher Rate Taxpayer

Item	Amount
Salary	£60,000
Taxable gain (after allowance)	£20,000
CGT rate	24%
CGT due	£4,800

Example 3: Mixed Rate Situation

Item	Amount
Salary	£45,000
Taxable gain (after allowance)	£12,000
Basic rate band remaining	£5,270 (£50,270 - £45,000)
Gain at 18%	£5,270 × 18% = £949
Gain at 24%	£6,730 × 24% = £1,615
Total CGT	£2,564

CGT on Different Assets

Shares and Investments

Asset	CGT Applies?	Notes
UK shares	Yes	18%/24%
Overseas shares	Yes	Same rates, may have double tax relief
ETFs/funds	Yes	Same rates
ISA investments	No	Tax-free
Pension investments	No	Tax-free until withdrawal

Cryptocurrency

Crypto Transaction	CGT Applies?
Selling for £	Yes
Swapping crypto for crypto	Yes (disposal)
Spending crypto	Yes (disposal)
Gifting crypto	Yes (market value)
Receiving as payment	Income tax (then CGT on sale)

Property

Property Type	CGT Applies?
Main home	No (PRR exempt)
Second home	Yes
Buy-to-let	Yes
Holiday let	Yes
Land	Yes
Overseas property	Yes

Other Assets

Asset	CGT Status
Cars	Exempt (wasting asset)
Personal items under £6,000	Exempt
Antiques/art over £6,000	Taxable
Gold bullion	Taxable
Premium Bonds	Exempt

Private Residence Relief (PRR)

Main Home Exemption

Situation	CGT Status
Only home, lived in throughout	Fully exempt
Multi-home — nominated main home	Exempt
Grounds under 5,000 sqm	Exempt
Grounds over 5,000 sqm	May be taxable

Partial PRR

Period	Relief
Lived in	Full relief
Absent for work (up to 4 years)	Full relief
Last 9 months of ownership	Full relief (even if not living there)
Rented out	Proportional relief

Lettings Relief

Rule	Detail
When it applies	Lived in and rented out
Maximum relief	£40,000
Calculation	Lower of: PRR amount, letting gain, or £40,000

Reporting and Paying CGT

When to Report

Asset Type	Deadline
UK residential property	60 days after completion
All other assets	Self Assessment by 31 January

How to Report

Method	When to Use
UK Property Account	Property sales — within 60 days
Self Assessment	All gains — annual return
Real Time CGT Service	Voluntary earlier reporting

Payment Deadlines

Asset	Payment Due
UK property	60 days after completion
Other assets	31 January after tax year

Reducing CGT Liability

Legitimate Strategies

Strategy	How It Helps
Use annual allowance	£3,000 tax-free
Spread sales over tax years	£3,000 each year
Transfer to spouse	Use their allowance too
Offset losses	Deduct from gains
Hold in ISA/pension	Tax-free growth

Using Losses

Loss Rule	Detail
Same year losses	Must be used first
Carried forward losses	Use only to reduce gain to £3,000
Can’t create a loss	For CGT purposes

Spouse/Civil Partner Transfers

Rule	Detail
Transfer between spouses	No CGT at transfer
Receiving spouse	Takes your purchase price
On sale	They pay CGT based on overall gain
Divorce	Different rules apply

CGT and Inheritance

Death Transfers

Situation	CGT Status
Assets passing on death	No CGT (IHT may apply)
Inheritor’s base cost	Market value at death
Future sale by inheritor	CGT on gain since death

Gift to Others

Gift Type	CGT Treatment
Gift to spouse	No CGT
Gift to child	CGT as if sold at market value
Gift to charity	No CGT
Sale at undervalue	CGT on market value, not sale price

CGT Reliefs

Business Asset Disposal Relief (BADR)

Criteria	Requirement
Asset type	Business assets, shares in trading company
Ownership	2+ years
Rate	10% (rising to 14% April 2025, 18% April 2026)
Lifetime limit	£1 million

Investors’ Relief

Criteria	Requirement
Asset type	Shares in unlisted trading company
Ownership	3+ years
Rate	10%
Lifetime limit	£10 million

Rollover Relief

Situation	Effect
Sell business asset	Defer CGT
Buy replacement asset	Within 1 year before to 3 years after
Result	Gain “rolls over” to new asset

CGT Planning Throughout the Year

Monthly/Quarterly

Action	Purpose
Track asset purchases	Know your base cost
Record improvement costs	Increase base cost
Keep receipts	Prove costs to HMRC

Year-End Planning (January-March)

Action	Purpose
Review unrealized gains	Plan disposals
Check if losses to harvest	Offset against gains
Transfer assets to spouse	Before disposal
Use annual allowance	Don’t waste it

Tax Year Summary

Date	Action
6 April	New tax year — new £3,000 allowance
Throughout year	Track gains and losses
January-March	Year-end planning
5 April	Last day to use allowance
60 days after property sale	Report and pay (property)
31 January following year	Self Assessment deadline

Common CGT Questions

Do I Pay CGT If I Make a Loss?

Situation	Action
Loss on disposal	No CGT (you can carry loss forward)
Register the loss	Within 4 years
Uses	Offset against future gains

Do I Pay CGT on Foreign Assets?

Status	Treatment
UK resident	CGT on worldwide gains
Non-UK resident	Generally only UK property
Foreign tax paid	May get relief

What If I Don’t Report?

Risk	Consequence
Late reporting (property)	£100+ penalties
Failure to notify chargeability	Penalties and interest
Deliberate non-disclosure	Up to 100% of tax owed

Capital Gains Tax UK: Property, Shares, Reliefs and Annual Exemptions

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