Tax

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

Capital gains tax rates, allowances, and calculation for 2026-27 tax year. How much CGT you'll pay on shares, property, crypto, and other assets. Includes worked examples.

Tax information is based on HMRC rules for the 2026/27 tax year. Tax rules can change — always verify current rates at GOV.UK. This is not tax advice. Consider consulting a qualified tax adviser for your personal situation.

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

Sources

  1. GOV.UK — Capital Gains Tax
  2. GOV.UK — Capital Gains Tax Rates