Capital Gains Tax (CGT) is charged on the profit you make when you sell or dispose of an asset that has increased in value. It applies to shares, funds, second properties, cryptocurrency, and personal possessions worth over £6,000. The rates changed significantly in October 2024 — if you last reviewed this topic before then, the numbers you know are out of date.
For rates on property, shares, BADR, and the full hub of related guides, see the Capital Gains Tax hub.
CGT Rates for 2026/27
Since 30 October 2024, the CGT rates on shares and most other assets increased to match the residential property rates. There is now a single rate structure for almost all assets:
| Asset type | Basic-rate taxpayer | Higher/Additional-rate taxpayer |
|---|---|---|
| Most assets (shares, funds, crypto, personal possessions) | 18% | 24% |
| Residential property (not your main home) | 18% | 24% |
| Business Asset Disposal Relief (BADR) | 18% | 18% |
| Investors’ Relief | 18% | 18% |
| Carried interest | 32% | 32% |
Your rate is determined by adding your taxable gain to your other taxable income. If the combined total stays within the basic-rate band (up to £50,270 for 2026/27), you pay 18%. The portion of any gain that pushes you above £50,270 is taxed at 24%.
How Rates Have Changed
| Period | Shares/most assets | Residential property (higher rate) |
|---|---|---|
| Up to 5 April 2024 | 10% / 20% | 18% / 28% |
| 6 April 2024 – 29 October 2024 | 10% / 20% | 18% / 24% |
| From 30 October 2024 (current) | 18% / 24% | 18% / 24% |
The convergence of share and property rates means the old strategy of preferring shares over property for CGT efficiency no longer applies.
Annual Exempt Amount 2026/27
Every individual has a CGT annual exempt amount of £3,000 for 2026/27. The first £3,000 of your total capital gains in the tax year is tax-free.
| 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 |
Couples each have their own £3,000 allowance — £6,000 combined per year — and transfers between spouses are CGT-free, allowing strategic use of both allowances.
Business Asset Disposal Relief (BADR)
BADR — formerly Entrepreneurs’ Relief — gives a reduced CGT rate when you sell a qualifying business interest. For 2026/27, the BADR rate is 18% (increased from 14% on 6 April 2026).
| Period | BADR rate |
|---|---|
| Up to 29 October 2024 | 10% |
| 30 October 2024 – 5 April 2025 | 10% |
| 6 April 2025 – 5 April 2026 | 14% |
| From 6 April 2026 (current) | 18% |
BADR applies to gains up to a £1 million lifetime limit. Qualifying conditions include owning at least 5% of the company and being an employee or officer for at least 2 years before disposal. See the BADR guide for full eligibility details.
What Is Exempt from CGT?
- Your main home — Private Residence Relief (PRR) means gains on your primary residence are normally tax-free, subject to conditions on periods of absence or partial business use.
- ISAs — All gains within an ISA wrapper are completely exempt from CGT. This is a major reason to use your ISA allowance each year.
- Pensions — Investments within a pension scheme are exempt from CGT.
- Gifts to your spouse or civil partner — Transfers between spouses occur at no gain/no loss.
- Gifts to charity — Donations of qualifying assets to charity are CGT-exempt.
- Personal possessions (chattels) — Items sold for £6,000 or less are exempt. Above £6,000, only a proportion of the gain is taxable.
- Government gilts and Premium Bonds — Always exempt from CGT.
- Cryptocurrency in ISAs — Note: direct crypto holdings cannot currently be held inside a UK ISA, so crypto gains are taxable.
How to Calculate Your Gain
Taxable gain = Proceeds − Original cost − Allowable expenses − Annual exempt amount
Allowable expenses include:
- The original purchase price (or probate value if inherited)
- Buying and selling costs (solicitor fees, stamp duty, broker commissions)
- Enhancement costs (e.g. an extension on a property — not maintenance or repairs)
Worked Example — Shares
You bought 1,000 shares at £8 each (£8,000) in 2019 and sell them in 2026 for £18,000 (£18 per share). Dealing costs were £100 total.
| Amount | |
|---|---|
| Sale proceeds | £18,000 |
| Less: original cost | −£8,000 |
| Less: dealing costs | −£100 |
| Gain | £9,900 |
| Less: annual exempt amount | −£3,000 |
| Taxable gain | £6,900 |
| CGT at 18% (basic-rate taxpayer) | £1,242 |
| CGT at 24% (higher-rate taxpayer) | £1,656 |
Shares: Section 104 Pooling
When you buy shares in the same company at different times, HMRC requires you to pool them using the Section 104 rule — your shares are treated as a single holding with an average cost price. You cannot cherry-pick which shares you are selling to minimise your gain. Shares bought and sold within 30 days are matched on a same-day or next-30-days basis first (the bed-and-breakfast rules).
Strategies to Reduce Your CGT Bill
Use Your Annual Exempt Amount Every Year
The £3,000 allowance cannot be carried forward. If you hold assets with accrued gains, consider selling a portion each year to crystallise gains within the annual exempt amount — locking in profits tax-free.
Transfer Assets to Your Spouse Before Selling
Transfers between spouses are CGT-free at no gain/no loss. If one partner is a basic-rate taxpayer (18% vs 24%) or has unused annual exempt amount, transferring assets before sale reduces the total CGT bill.
Bed and ISA
Sell assets held outside an ISA and immediately repurchase them inside your Stocks and Shares ISA. Future gains within the ISA are permanently CGT-free. The disposal does trigger CGT on any current gain, but uses up your annual exempt amount and resets the cost base inside the ISA wrapper.
Unlike the old “bed and breakfasting” (selling and rebuying the same asset to reset the cost base), Bed and ISA is not caught by the 30-day matching rules because the repurchase occurs in a different account type.
Offset Capital Losses
Losses realised in the same tax year automatically offset gains. Remaining losses can be carried forward indefinitely — report them to HMRC within four years of the end of the tax year in which the loss arose. Review your portfolio each March/April for assets sitting at a loss to crystallise them before the tax year ends.
Plan the Timing of Sales
If a disposal would push you from the basic rate into the higher rate, splitting the sale across two tax years uses two annual exempt amounts and may keep more of the gain taxable at 18% rather than 24%.
Reporting CGT to HMRC
| Asset type | How to report | Deadline |
|---|---|---|
| UK residential property | UK Property Disposal service (online) | 60 days from completion |
| Shares, crypto, other assets | Self Assessment tax return | 31 January following the tax year end |
The 60-day window for property is a hard deadline — late filing incurs penalties regardless of whether tax is owed. Keep completion statements, contracts, and solicitor invoices as evidence of dates and costs.
If total proceeds from all disposals in the year exceed £12,000 (four times the £3,000 exempt amount), you may need to report via Self Assessment even if no tax is due.
CGT on Cryptocurrency
Cryptocurrency is treated as a capital asset by HMRC — not as currency. Every disposal (sale, exchange, or using crypto to buy goods) is a CGT event. Pooling rules apply to each coin type separately. HMRC requires records of every transaction including the sterling value at the date of each acquisition and disposal.