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Tax Guide — 2026/27 Capital Gains Tax (CGT) is charged on the profit you make when you sell an asset that has increased in value. With rates now up to 24% on property and the annual exempt amount cut to just £3,000, understanding CGT has never been more important for property owners, investors, and business owners. CGT Rates for 2026/27
The Annual Exempt AmountEvery UK individual gets a CGT-free allowance each year. For 2026/27 this is just £3,000 — down from £12,300 in 2022/23. This means much more of your gains are now taxable.
What Triggers CGT?
What Does NOT Trigger CGT?
How to Calculate Your CGT BillCGT is calculated on your gain — not the full sale price. The gain is the sale price minus the original purchase price, minus allowable costs (legal fees, estate agent fees, improvements for property).
8 Legal Ways to Reduce Your CGT Bill1. Use Your Annual Exempt Amount Every YearThe £3,000 allowance cannot be carried forward. Use it each year by selling assets with gains up to £3,000 and rebuying (known as bed and ISA or bed and spouse). 2. Invest Through an ISAGains inside a Stocks and Shares ISA are completely CGT-free. This is the single most effective long-term CGT reduction strategy. 3. Transfer Assets to Your SpouseTransfers between spouses are CGT-free. You can transfer assets to a lower-rate taxpayer spouse, who can then sell and pay CGT at a lower rate, or use their own £3,000 exempt amount. 4. Business Asset Disposal ReliefIf you sell a qualifying business, BADR caps CGT at 18% on up to £1 million of lifetime gains — compared to 24% for regular assets. 5. Claim All Allowable CostsFor property sales, you can deduct estate agent fees, solicitor fees, stamp duty paid on purchase, and cost of improvements (not repairs). Many sellers forget some of these. 6. Spread Disposals Over Multiple Tax YearsIf you're planning to sell a large investment, selling in tranches across two tax years doubles your exempt amount and may keep some gains in the basic rate band. 7. Use Capital LossesIf you have investments that have lost value, selling them crystallises a loss that can be offset against your gains. Capital losses can also be carried forward indefinitely. 8. Private Residence Relief for PropertyYour main home is exempt from CGT under Private Residence Relief. If you've lived in the property for part of your ownership, you get partial relief. The final 9 months of ownership always qualify regardless of occupancy. CGT on Property — Key Rules
By Chandraketu Tripathi · Updated April 2026 · kaeltripton.com |
Capital Gains Tax UK 2026 — Complete Guide: Rates, Allowances and How to Reduce ItComplete guide to Capital Gains Tax UK 2026 — rates, the £3,000 allowance, what triggers CGT, and 8 legal ways to reduce your bill on property and investments. 
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