Answers · UK 2025/26

How much is capital gains tax on shares in 2026?

For 2026/27, Capital Gains Tax on shares is 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers, after the £3,000 annual exempt amount. Shares held inside an ISA or pension are completely free of CGT.

Last updated: 1 June 2026Last reviewed: 1 June 2026How we verify

Full answer

When you sell shares, funds or other non-property assets at a profit in 2026/27, Capital Gains Tax applies at 18% within your remaining basic-rate band and 24% above it. The first £3,000 of gains each year is covered by the annual exempt amount and is tax-free. Shares held inside an ISA, a pension or that qualify for certain reliefs are exempt entirely. Worked example: you bought shares for £20,000 and sell them for £35,000, a £15,000 gain. Deduct the £3,000 exemption, leaving £12,000 taxable. A higher-rate taxpayer pays 24% = £2,880. A basic-rate taxpayer with enough unused band pays 18% = £2,160; if part of the gain pushes them into the higher band, that part is taxed at 24%. You can offset losses on other shares sold in the same year, and unused losses can be carried forward to future years if reported to HMRC. Business owners selling qualifying company shares may claim Business Asset Disposal Relief, which charges a reduced 18% rate (for 2026/27) on lifetime gains up to £1 million. Report and pay share CGT through your Self Assessment return by 31 January following the tax year. CGT is not devolved, so the rates are identical in Scotland, although your Scottish Income Tax band position affects how much falls at 18% versus 24%. Wrapping investments in an ISA (£20,000 a year) is the simplest way to avoid CGT altogether. Use the Capital Gains Tax and ISA calculators to plan.