What are the capital gains tax rates in the UK 2026?

Capital Gains Tax (CGT) rates in the UK for 2026/27: Basic rate taxpayers: 18% on all chargeable assets (shares, property, crypto, business assets). Higher and additional rate taxpayers: 24% on all chargeable assets. These unified rates apply since 30 October 2024 (Autumn Budget), when the previous 10%/20% rates for most assets were replaced. The annual CGT exempt amount is £3,000 (frozen at this level since April 2024 and until at least 2030). This means the first £3,000 of net capital gains each tax year is tax-free. Business Asset Disposal Relief (BADR) rate: 14% from April 2025, rising to 18% from April 2026.

What is the capital gains tax allowance for 2026/27?

The Capital Gains Tax annual exempt amount (AEA) for 2026/27 is £3,000 per individual (£1,500 for trusts). This is the amount of capital gains you can make each year before CGT applies. Key points: the allowance does not roll over — unused allowance in one tax year cannot be carried to the next; married couples and civil partners each have their own £3,000 allowance (£6,000 combined); losses from previous years can be carried forward and offset against future gains; the AEA was cut dramatically from £12,300 in 2022/23 to £6,000 in 2023/24 to £3,000 in 2024/25 onwards — frozen until at least 2030.

How do I calculate capital gains tax UK?

To calculate your CGT: Step 1 — Calculate your gain: Sale price minus original purchase price minus allowable costs (stamp duty, legal fees, improvement costs, disposal costs). Step 2 — Deduct losses: Offset any capital losses from the same tax year. Step 3 — Deduct the annual exempt amount (£3,000). Step 4 — Add remaining gain to your taxable income to determine your tax band. Step 5 — Apply the CGT rate: 18% if within basic rate band (income + gains under £50,270); 24% on gains above the basic rate band. Example: £50,000 gain on a BTL property sale. Minus £3,000 AEA = £47,000 taxable. Higher-rate taxpayer: 24% × £47,000 = £11,280 CGT.

Do I need to report capital gains tax on property within 60 days?

Yes — if you sell a UK residential property and make a taxable gain (above the £3,000 annual exempt amount), you must report the gain and pay CGT to HMRC within 60 days of completion. This is done via HMRC's 'Report and pay CGT on UK property' online service. You must still include the disposal in your annual Self Assessment tax return if you file one. Failure to report within 60 days incurs automatic penalties. This 60-day rule applies to UK residents selling residential property (not your main home). Your main home is exempt from CGT under Private Residence Relief.

Capital Gains Tax UK 2026: £3,000 Allowance, 18%/24% Rates

Capital Gains Tax UK 2026: Rates, Allowance & How to Calculate Your Bill

Chandraketu Tripathi

Finance Editor, Kaeltripton

Published 4 Apr 2026

Last reviewed 4 May 2026

✓ Fact-checked

CGT rates were overhauled in October 2024 — the previous 10%/20% split is gone, replaced with unified 18%/24% rates. The annual allowance has been slashed to £3,000. Here is the complete 2026 guide to calculating your bill and reducing it legally. Rates Changed October 2024 — £3,000 Allowance — Updated April 2026

CGT Rates UK 2026/27 — Complete Summary

Asset Type	Basic Rate Taxpayer	Higher/Additional Rate Taxpayer	Notes
Shares, funds, ETFs (outside ISA)	18%	24%	Since 30 October 2024
Residential property (BTL, second home)	18%	24%	60-day reporting rule applies
Commercial property	18%	24%	—
Crypto currency	18%	24%	HMRC treats crypto as a chargeable asset
Personal possessions over £6,000	18%	24%	Jewellery, art, antiques etc.
Your main home	0%	0%	Private Residence Relief — exempt
ISA/SIPP investments	0%	0%	Tax-free wrappers — never subject to CGT
Business assets (BADR qualifying)	18% (from April 2026)	18% (from April 2026)	Was 14% from April 2025; rising to 18% April 2026
Gifts between spouses/civil partners	0%	0%	No gain/no loss basis — exempt

How to Calculate Your CGT Bill — Step by Step

Step	Action	Example (BTL Property Sale)
1	Work out the gain: Sale price − purchase price − allowable costs	Sold for £300,000; bought for £200,000; costs £5,000. Gain = £95,000
2	Deduct capital losses from same tax year	No losses this year. Remaining: £95,000
3	Deduct annual exempt amount (£3,000)	£95,000 − £3,000 = £92,000 taxable gain
4	Add taxable gain to income to find tax band	Income £45,000 + gain £92,000. First £5,270 of gain in basic rate band (up to £50,270)
5	Apply correct CGT rate to each portion	£5,270 at 18% = £948.60; £86,730 at 24% = £20,815.20
6	Total CGT bill	£948.60 + £20,815.20 = £21,763.80
7	Report and pay	Within 60 days of completion (property); Self Assessment (other assets)

Legal Ways to Reduce Your CGT Bill

Strategy	How It Saves CGT	Notes
Use your annual exempt amount	First £3,000 of gains free each year	Don't let allowance go unused if you have gains
Bed and ISA	Sell investments; rebuy inside ISA — gains crystallised at £3,000 AEA	Future growth sheltered; gains reset inside ISA
Offset capital losses	Losses reduce taxable gains pound for pound	Losses can be carried forward indefinitely
Transfer to spouse	Spouse has own £3,000 AEA and may pay lower rate	No CGT on transfers between spouses/civil partners
Increase pension contributions	Lowers taxable income — may shift gains into basic rate band (18% vs 24%)	Significant saving on large gains
Timing disposals	Split gains across two tax years to use two AEAs (£6,000 total)	Cross tax year boundary (before/after 5 April)
Private Residence Relief	Main home exempt from CGT for period you lived there	Period of actual occupation + last 9 months always exempt
Business Asset Disposal Relief	10% rate (pre-Oct 2024); now 14-18% on up to £1M qualifying gains	Business owners selling qualifying companies or business assets

60-Day CGT Reporting — Property Sales

Scenario	Report Within 60 Days?	How
Selling BTL property at a profit	Yes — mandatory	gov.uk 'Report and pay CGT on UK property'
Selling second home at a profit	Yes — mandatory	gov.uk 'Report and pay CGT on UK property'
Selling your main home (lived there full time)	No — exempt via Private Residence Relief	No reporting required
Selling shares at a profit	No — Self Assessment only	Annual Self Assessment tax return
Selling crypto at a profit	No — Self Assessment only	Annual Self Assessment tax return
Making a loss on property sale	No — but report loss in Self Assessment	Can carry loss forward

CGT and Crypto — What You Need to Know

HMRC treats cryptocurrency as a chargeable asset — not currency. This means: CGT applies when you sell, trade, or use crypto to buy goods/services; each disposal is a CGT event; losses on crypto can offset gains; the £3,000 AEA applies; the 18%/24% rates apply. If you regularly trade crypto and it is your primary income, HMRC may treat profits as income tax rather than CGT. Crypto gains must be reported in your Self Assessment tax return (no 60-day rule — annual return only). Keep records of all purchase prices, disposal amounts and dates. HMRC has increased enforcement of crypto tax compliance significantly since 2023.

BADR — Business Asset Disposal Relief 2026

Business Asset Disposal Relief (formerly Entrepreneurs' Relief) reduces CGT to 18% on the first £1 million of qualifying gains from selling a business. The rate has been changing: Pre-30 October 2024: 10%. From April 2025: 14%. From April 2026: 18% (same as standard basic rate — making BADR less valuable than it used to be). To qualify: you must have been a director or employee for at least 2 years; own at least 5% of ordinary shares for at least 2 years; the company must be a trading company. The lifetime allowance remains £1 million — any gains above this are taxed at normal rates.

KAELTRIPTON VERDICT

CGT in 2026: £3,000 annual exempt amount (frozen until 2030); 18% basic rate, 24% higher rate on all assets including property. Main home exempt. ISAs and SIPPs: always CGT-free. Key actions: use your £3,000 AEA every year; bed and ISA gains; transfer to spouse before selling; offset losses; time disposals across tax years. Property sales: report and pay within 60 days of completion via gov.uk.

£3,000 Allowance — 18%/24% Rates — 60 Days for Property — Use ISA to Shield Gains

Q: CGT rates UK 2026?

A: 18% basic rate taxpayers; 24% higher/additional rate — all assets since October 2024. Main home: exempt. ISA/SIPP: exempt. BADR (business): 18% from April 2026 on first £1M qualifying gains.

Q: CGT allowance 2026?

A: £3,000 per individual (£1,500 trusts). Frozen until 2030. Married couples: £6,000 combined. Does not roll over — unused allowance lost each April.

Q: Do I report property CGT within 60 days?

A: Yes — mandatory for residential property (BTL, second home) with taxable gains. Use gov.uk 'Report and pay CGT on UK property'. Failure: automatic penalties. Main home: exempt — no reporting.

Q: How do I reduce CGT?

A: Use £3,000 AEA annually. Bed and ISA. Transfer to spouse. Offset losses. Increase pension contributions (shift into basic rate band). Split disposals across two tax years.

Data verified April 2026. Tax rates and rules can change — always verify with HMRC or a qualified adviser before acting. This article is for informational purposes only.