Answers · UK 2025/26
How does the CGT Annual Exempt Amount work in 2026/27?
The Annual Exempt Amount (AEA) for CGT is £3,000 in 2026/27. Gains below this threshold are tax-free; gains above are taxed at 18% or 24% depending on the asset and your income.
Full answer
The Capital Gains Tax Annual Exempt Amount (AEA) is £3,000 for individuals in 2026/27, reduced from £12,300 in 2022/23. Each individual receives this allowance separately; spouses and civil partners each have their own £3,000 AEA. Gains below £3,000 are tax-free and do not need to be reported if total proceeds are under £50,000. Above the AEA, gains on residential property are taxed at 18% (basic-rate band) or 24% (higher-rate band). Gains on other assets (shares, business assets not qualifying for BADR) are also 18% or 24%. Business Asset Disposal Relief (BADR) applies a flat 18% rate on qualifying business disposals (lifetime limit £1 million). Losses in the same year offset gains before the AEA is applied.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.