Capital Gains Tax in the UK (2026/27)

CGT rates for 2026/27

CGT rates are the same across the UK, including Scotland. Gains are added on top of your taxable income to decide the band, using the UK basic rate band of £37,700.

How to calculate a gain

Gain = disposal proceeds (or market value if gifted) - original cost - allowable costs. Allowable costs include buying and selling fees, stamp duty paid on purchase, and capital improvements (not repairs or maintenance). Losses in the same year are deducted first; brought-forward losses are only used to bring gains down to the annual exempt amount.

Worked example: shares

Sam earns £40,000 and sells shares outside an ISA for a £23,000 gain.

• Taxable gain: £23,000 - £3,000 = £20,000
• Taxable income £27,430 leaves £10,270 of basic rate band
• £10,270 x 18% = £1,848.60; £9,730 x 24% = £2,335.20
• CGT due: £4,183.80

UK property and the 60-day rule

If you sell UK residential property and owe CGT, for example a second home or buy-to-let, you must report and pay within 60 days of completion using HMRC's Report and pay Capital Gains Tax on UK property service. You must also include it on your Self Assessment return if you file one. Non-UK residents must report any disposal of UK land or property within 60 days, even if no tax is due.

Private Residence Relief usually exempts your main home, including the last 9 months of ownership. Letting relief is now only available if you shared occupation with the tenant.

Business Asset Disposal Relief

BADR applies to qualifying disposals of a business or shares in your trading company (at least 5% held for 2 years as an officer or employee), up to a £1 million lifetime limit. The rate was 10% until 5 April 2025, 14% for 2025/26 and is 18% from 6 April 2026. With the rate now equal to the CGT basic rate, the benefit is the 6-point saving against the 24% higher rate: on a £500,000 gain, £90,000 under BADR versus £120,000 at 24%.

Ways to reduce CGT legally

• Use your £3,000 allowance each year and spread disposals across tax years.
• Transfer assets to a spouse or civil partner (no CGT) so they can use their allowance and basic rate band.
• Hold investments in ISAs and pensions, where gains are tax-free.
• Claim losses: report them within 4 years of the end of the tax year to carry them forward.
• Pension contributions extend your basic rate band, so more of a gain is taxed at 18%.

How share sales are matched

When you sell shares in a company you have bought several times, HMRC matches the sale in a fixed order: first with shares bought on the same day, then with shares bought in the next 30 days, then with your "section 104 pool" at average cost.

The 30-day rule stops "bed and breakfasting": selling to use your allowance and buying back the next day. If you buy back within 30 days, the sale is matched with the new purchase and the gain you hoped to crystallise does not arise. Buying back inside an ISA (often called "bed and ISA") or a spouse buying is not caught, because those are different owners for CGT.

Example: you bought 1,000 shares for £4,000 and later 1,000 for £8,000. The pool is 2,000 shares at £6 average. Selling 500 for £5,000 gives a gain of £5,000 - (500 × £6) = £2,000.

Losses: reporting them saves tax later

A loss only helps you if you report it to HMRC, within 4 years of the end of the tax year you made it.

Same-year losses are deducted from gains before the £3,000 allowance. A higher-rate taxpayer with a £15,000 gain and a £4,000 loss in the same year pays £1,903.80 instead of £2,863.80. Brought-forward losses are used only to bring gains down to the annual exempt amount, so they are not wasted.

Gifts, crypto and other assets people forget

• Gifts to anyone other than a spouse or civil partner are treated as a sale at market value. You can owe CGT without receiving any money.
• Holdover relief can defer the gain on gifts of business assets and on gifts into most trusts, passing it to the recipient.
• Cryptoassets are taxed as assets. Selling, swapping one token for another, or spending crypto on goods can all be disposals.
• Personal possessions sold for less than £6,000 are outside CGT. Your own car is exempt unless you used it for business.
• Your main home is usually exempt, but gains on part used exclusively for business, or periods it was not your home, can be taxable.

Reporting non-property gains

For shares, crypto and other non-property assets, report gains on your Self Assessment return by 31 January after the tax year, or use HMRC's real-time Capital Gains Tax service if you are eligible and do not otherwise file a return.

If you are registered for Self Assessment, you also need to report gains on your return when the total you sold assets for in the year was more than £50,000, even if your gains are within the allowance. The real-time service has its own deadline: report by 31 December after the end of the tax year. Keep contract notes, purchase records and any corporate-action letters. Platforms do not report your gains for you.