What is Capital Gains Annual Exempt Amount? UK Definition 2026/27
Quick Answer
The amount of capital gains you can make tax-free each year - £3,000 for 2026/27.
Definition of Capital Gains Annual Exempt Amount
The Capital Gains Tax Annual Exempt Amount (AEA) is the amount of gains you can realise each tax year without paying CGT. For 2026/27, this is £3,000 for individuals (reduced from £6,000 in 2023/24 and £12,300 in 2022/23). Trusts receive half this amount. The allowance cannot be carried forward if unused.
Capital Gains Annual Exempt Amount — Key Facts for 2026/27
| 2026/27 amount | £3,000 |
| 2023/24 amount | £6,000 |
| 2022/23 amount | £12,300 |
| Trust allowance | £1,500 |
How Capital Gains Annual Exempt Amount Works — Example
- 1Shares sold: £20,000
- 2Original cost: £10,000
- 3Gain: £10,000
- 4Annual exempt amount: £3,000
- 5Taxable gain: £7,000
- 6CGT at 24%: £1,680
How Capital Gains Annual Exempt Amount Affects Your Tax
The reduced AEA means more capital gains are now taxable. Consider crystallising gains each year up to the exempt amount. Spouses can each use their allowance, effectively doubling the tax-free amount for jointly held assets.
Official HMRC Guidance on Capital Gains Annual Exempt Amount
For official guidance, refer to HMRC's documentation. Tax rules can change, so always verify current rates and thresholds on gov.uk.
HMRC: CGT allowancesFrequently Asked Questions about Capital Gains Annual Exempt Amount
Related Tax Terms
Accuracy Note
This information is for guidance only and is based on 2026/27 tax year rates. Tax rules are complex and your circumstances may differ. For personal advice, consult a qualified accountant or tax adviser.