Capital Gains Tax Rates 2026/27: Complete Guide to CGT on Property, Shares & Assets

Capital Gains Tax Rates 2026/27

Capital Gains Tax (CGT) is charged on the profit when you sell or dispose of an asset that has increased in value. This guide explains the 2026/27 rates and exemptions.

Annual Exempt Amount 2026/27

The CGT Annual Exempt Amount is £3,000 for 2026/27. This is the amount of gains you can make tax-free each year.

Tax Year	Annual Exemption
2022/23	£12,300
2023/24	£6,000
2024/25 onwards	£3,000

CGT Rates for 2026/27

Residential Property:

Tax Band	Rate
Basic Rate Taxpayer	18%
Higher/Additional Rate	24%

Other Assets (shares, business assets, etc.):

Tax Band	Rate
Basic Rate Taxpayer	10%
Higher/Additional Rate	20%

How CGT Is Calculated

1. Calculate the gain (sale price minus purchase price and costs)
2. Deduct your Annual Exempt Amount (£3,000)
3. Add the remaining gain to your income
4. Apply the appropriate rate based on your total income

Example: Selling Shares

Shares sold for £50,000, originally bought for £30,000:

• Gain: £50,000 - £30,000 = £20,000
• Less Annual Exemption: £20,000 - £3,000 = £17,000 taxable

If you're a basic rate taxpayer:

• Tax: £17,000 × 10% = £1,700

If you're a higher rate taxpayer:

• Tax: £17,000 × 20% = £3,400

Example: Selling Buy-to-Let Property

Property sold for £350,000, bought for £200,000:

• Sale price: £350,000
• Purchase price: £200,000
• Buying costs (stamp duty, legal): £8,000
• Selling costs (agent, legal): £10,000
• Improvements: £15,000
• Gain: £350,000 - £200,000 - £8,000 - £10,000 - £15,000 = £117,000
• Less Annual Exemption: £117,000 - £3,000 = £114,000 taxable

Higher rate taxpayer:

• Tax: £114,000 × 24% = £27,360

Reporting and Payment Deadlines

Residential Property:

• Report to HMRC within 60 days of completion
• Pay CGT within 60 days of completion
• Use the "Report and pay Capital Gains Tax on UK property" service

Other Assets:

• Report on Self Assessment tax return
• Pay by 31 January following the tax year

CGT Reliefs and Exemptions

Private Residence Relief: Your main home is usually exempt from CGT, but relief may be restricted if you:

• Let part of it
• Used it for business
• Have very large grounds
• Lived elsewhere as your main home

Business Asset Disposal Relief (formerly Entrepreneurs' Relief):

• 10% rate on qualifying business disposals
• Lifetime limit of £1 million in gains
• Must have owned business/shares for 2 years

Investors' Relief:

• 10% rate on qualifying shares in unlisted trading companies
• Lifetime limit of £10 million

Strategies to Reduce CGT

1. Use your annual exemption - Don't waste the £3,000 allowance
2. Spouse transfers - Assets can be transferred between spouses tax-free
3. Bed and ISA - Sell and rebuy within an ISA
4. Timing of sales - Spread over tax years to use multiple exemptions
5. Offset losses - Capital losses reduce gains

Calculate Your Capital Gains Tax

Use our Capital Gains Tax Calculator to estimate your CGT liability on asset sales.