Key takeaways
- Capital Gains Tax is charged at 18% on gains within your basic rate band and 24% above it, for all assets including residential property.
- The annual exempt amount is £3,000 for individuals and £1,500 for most trusts, down from £12,300 in 2022/23.
- Gains qualifying for Business Asset Disposal Relief or Investors' Relief are taxed at 18% from 6 April 2026, up from 14% in 2025/26.
- Trustees and personal representatives pay 24% on all gains.
- Your rate depends on your taxable income: gains are added on top of income to see how much of the basic rate band is left.
Capital Gains Tax (CGT) is charged on the profit when you sell or give away an asset that has gone up in value. Rates rose sharply in October 2024 and the tax-free allowance has been cut by three-quarters since 2022, so far more people now pay it. This page sets out the figures for the 2026/27 tax year.
CGT rates for 2026/27
| Gains falling within | Rate |
|---|---|
| Your unused basic rate band | 18% |
| Above the basic rate band | 24% |
| Gains qualifying for Business Asset Disposal Relief or Investors’ Relief | 18% |
| Trustees and personal representatives | 24% |
Since 30 October 2024 the same 18% and 24% rates apply to shares, residential property and other assets. Before then, gains on most assets were taxed at 10% and 20%, and residential property at 18% and 28% (24% from April 2024).
Carried interest received by fund managers is taxed under the Income Tax framework from 6 April 2026, so it no longer has its own CGT rate.
The annual exempt amount
| Tax year | Individuals | Most trusts |
|---|---|---|
| 2020/21 to 2022/23 | £12,300 | £6,150 |
| 2023/24 | £6,000 | £3,000 |
| 2024/25 onwards (including 2026/27) | £3,000 | £1,500 |
The annual exempt amount (AEA) covers the first £3,000 of net gains each tax year. Points to know:
- it cannot be carried forward; if you do not use it, it is lost
- each spouse or civil partner has their own AEA, so transferring assets to a spouse before selling can double the tax-free amount
- personal representatives get the full AEA for the tax year of death and the next two tax years
- current-year losses must be set against gains first, even if that wastes the AEA; losses brought forward are only used to bring gains down to the AEA
How your rate is worked out
CGT rates depend on your taxable income for the year:
- Work out your taxable income after the Personal Allowance.
- See how much of the basic rate band (£37,700 in 2026/27) is left.
- Gains, after the AEA and any losses, use up the remaining basic rate band first and are taxed at 18%; the rest are taxed at 24%.
Example
Chloe has taxable income of £30,000 (salary of £42,570 less the £12,570 Personal Allowance) and sells shares in 2026/27 with a gain of £20,000.
| Step | Amount |
|---|---|
| Gain | £20,000 |
| Less annual exempt amount | (£3,000) |
| Taxable gain | £17,000 |
| Basic rate band left (£37,700 − £30,000) | £7,700 |
| £7,700 at 18% | £1,386 |
| £9,300 at 24% | £2,232 |
| CGT due | £3,618 |
Our Capital Gains Tax calculator and CGT on residential property calculator do the sums for you.
Business Asset Disposal Relief and Investors’ Relief
| Tax year | BADR and Investors’ Relief rate | Lifetime limit |
|---|---|---|
| Before 6 April 2025 | 10% | £1 million each |
| 2025/26 | 14% | £1 million each |
| 2026/27 onwards | 18% | £1 million each |
With the main lower rate also at 18%, these reliefs now mainly benefit higher rate taxpayers, saving 6% on qualifying gains. See Business Asset Disposal Relief.
Assets that are free of CGT
- your main home, usually, through private residence relief
- investments in ISAs and pensions
- UK government gilts and Premium Bond prizes
- private cars
- personal possessions worth £6,000 or less when sold (chattels), and wasting assets such as most boats
- gifts to a spouse, civil partner or charity
Reporting and payment
- Gains on UK residential property must be reported and the tax paid within 60 days of completion.
- Other gains are reported on your Self Assessment return, with tax due by 31 January after the tax year, or through HMRC’s real-time CGT service.
- If you are in Self Assessment, you must report disposals where total proceeds exceed £50,000, even if the gains are within the AEA.
See how to report and pay CGT and the CGT complete guide.
Frequently asked questions
What are the CGT rates for 2026/27?
18% for gains within your basic rate band and 24% above it, on all assets including residential property.
What is the Capital Gains Tax allowance for 2026/27?
£3,000 for individuals and £1,500 for most trusts.
Did Business Asset Disposal Relief change in April 2026?
Yes. The rate rose from 14% to 18% for disposals on or after 6 April 2026. The £1 million lifetime limit did not change.
Can I carry forward my unused CGT allowance?
No. The annual exempt amount is lost if not used in the tax year. Unused capital losses can be carried forward, but the allowance cannot.
Sources
Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance in October 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.