Capital Gains Tax UK 2026: Rates, Allowances & How to Reduce Your Bill

Chandraketu Tripathi

Finance Editor, Kaeltripton

Published 5 Apr 2026

Last reviewed 4 May 2026

✓ Fact-checked

By Chandraketu Tripathi | Updated April 2026

Capital gains tax changed significantly in October 2024 when the Chancellor equalised CGT rates between property and other assets. In 2026-27, most CGT is now paid at 18% (basic rate) or 24% (higher rate) regardless of the asset type — though the annual exempt amount remains just £3,000, meaning most meaningful gains will trigger a tax bill. This guide covers rates, calculations, and every legal way to reduce your CGT liability.

Key Facts

CGT annual exempt amount: £3,000 per person | Basic rate CGT: 18% (property and other assets) | Higher rate CGT: 24% | Property sale report deadline: 60 days from completion | Main home: usually exempt under PRR

Capital Gains Tax Rates UK 2026-27

Source: HMRC, GOV.UK. Rates unified from 30 October 2024. Annual exempt amount: £3,000 individuals, £1,500 trusts.
Asset Type	Basic Rate Taxpayer	Higher/Additional Rate Taxpayer	Effective From
Residential property (non-main home)	18%	24%	30 October 2024
Other assets (shares, business assets etc)	18%	24%	30 October 2024
Business Asset Disposal Relief (BADR)	18% from 6 April 2026	18% from 6 April 2026	Source: GOV.UK HMRC confirmed
Investors' Relief	18% from 6 April 2026	18% from 6 April 2026	Source: GOV.UK HMRC confirmed
Main home (Private Residence Relief)	0%	0%	Ongoing — no change

CGT Calculator UK 2026: Worked Examples

Approximate. Actual tax depends on total income and when gain falls within basic vs higher rate band. April 2026.
Scenario	Gain	Exempt Amount	Taxable Gain	CGT Rate	Tax Bill
Higher rate taxpayer sells BTL property	£50,000	£3,000	£47,000	24%	£11,280
Basic rate taxpayer sells shares	£20,000	£3,000	£17,000	18%	£3,060
Higher rate sells shares	£20,000	£3,000	£17,000	24%	£4,080
Couple sell BTL jointly (both higher rate)	£50,000 (£25k each)	£3,000 each	£22,000 each	24%	£5,280 each
Gain within basic rate band	£15,000	£3,000	£12,000	18%	£2,160
Gain crosses basic/higher rate threshold	£30,000	£3,000	£27,000	Split rate	Variable

How to Reduce Your Capital Gains Tax Bill — Legally

Method	How It Works	Saving Potential
Use your annual exempt amount	Every individual gets £3,000 tax-free each year — use it	£540-720 per person
Transfer assets to spouse/civil partner	Transfer before sale — both use their exempt amounts	Double the exempt amount
Bed and spouse	Sell assets, spouse buys them back — uses both exempt amounts	£1,080-1,440 saving
Invest in ISA	Assets inside ISA never trigger CGT — shelter gains permanently	All future gains tax-free
Business Asset Disposal Relief	10-14% rate on qualifying business sales instead of 18-24%	Up to 10% saving on £1M
Pension contributions	Increase basic rate band — more gains taxed at 18% not 24%	6% saving on gains in higher band
Report losses	Capital losses offset gains — report all losses even if no tax due	Reduce taxable gains pound for pound
Time of sale	Delay to next tax year to use next year's exempt amount	£3,000 more tax-free

Residential Property CGT: The 60-Day Rule

Since April 2020, any gain on a residential property (other than your main home) must be reported to HMRC and CGT paid within 60 days of completion. This applies to second homes, buy-to-let properties, inherited properties, and any property not covered by Private Residence Relief. You report using your HMRC Property Account online. Failure to report within 60 days results in automatic late filing penalties and interest on unpaid tax. Even if you have no CGT to pay (because the gain is within your exempt amount or offset by losses), you still need to report if the property is in the UK.

Frequently Asked Questions

What is the capital gains tax rate UK 2026?

Capital gains tax (CGT) rates in the UK for 2026-27 are: Basic rate taxpayers pay 18% on gains from residential property and 18% on other assets. Higher/additional rate taxpayers pay 24% on residential property gains and 24% on other assets. These rates have been unified — the previous lower rates of 10% and 20% on non-property assets were increased to 18% and 24% from 30 October 2024. The annual CGT exempt amount is £3,000 for individuals.

How much capital gains tax will I pay UK 2026?

CGT is calculated on gains above the £3,000 annual exempt amount. To calculate: take your gain, deduct the £3,000 allowance, then apply the rate based on your total income. Example: You sell a property for £50,000 profit, you're a higher rate taxpayer, and the £3,000 exempt amount applies. Taxable gain = £47,000. CGT at 24% = £11,280. Note: residential property gains must be reported to HMRC within 60 days of completion.

Do I pay capital gains tax when I sell my house UK?

Your main home is usually exempt from CGT under Private Residence Relief (PRR) — if you have lived in it throughout your ownership as your only or main residence. If you have let it out, had a period of absence, or own more than one home, some or all of the gain may be taxable. The final 9 months of ownership always qualifies for PRR regardless. You must report and pay CGT on a second home or buy-to-let property sale within 60 days of completion.

What is the CGT annual exempt amount UK 2026?

The Capital Gains Tax annual exempt amount (also called the Annual Exempt Amount or AEA) is £3,000 for individuals and £1,500 for most trusts in 2026-27. This is unchanged from 2024-25 and 2025-26. It was significantly reduced from £12,300 in 2022-23 to £6,000 in 2023-24, then to £3,000 in 2024-25. The reduction means most property sellers and investors now pay CGT where they might not have before.

When do I have to report and pay capital gains tax UK?

For residential property sales: within 60 days of completion — you must report the gain and pay any CGT due through your HMRC property account, even if you file a self-assessment tax return. For other assets: report through your annual self-assessment tax return by 31 January following the tax year end. If you don't file a self-assessment, you must notify HMRC by 5 October after the tax year in which you made the gain.

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Disclaimer: Always verify with GOV.UK, HMRC, VOA, and Acas. Sources: gov.uk, bcpcouncil.gov.uk, bristol.gov.uk, commonslibrary.parliament.uk, gtlaw.com, kingsbridge.co.uk, ir35update.co.uk. April 2026.