Answers · UK 2025/26

What is the Capital Gains Tax allowance for 2026?

The Capital Gains Tax annual exempt amount is £3,000 for 2026/27. Gains above it are taxed at 18% for basic-rate taxpayers and 24% for higher-rate taxpayers. Business Asset Disposal Relief lowers the rate to 18% on qualifying gains.

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

Full answer

For 2026/27 the Capital Gains Tax annual exempt amount is £3,000 — the profit you can make on disposals each tax year before any CGT is due. Above that, gains are taxed at 18% if they fall within your basic-rate band and 24% above it, following the rates that now apply to most assets including shares and second properties. Business Asset Disposal Relief (formerly Entrepreneurs’ Relief) charges a reduced 18% rate on qualifying business gains up to a £1 million lifetime limit. Worked example: you sell shares for a £13,000 profit. The first £3,000 is covered by the annual exempt amount, leaving £10,000 taxable; a higher-rate taxpayer pays 24% × £10,000 = £2,400. A basic-rate taxpayer would pay 18% on the part of the gain that fits within their remaining basic-rate band and 24% on any excess. Gains within an ISA or pension are completely exempt, and transfers between spouses are tax-free, so spreading assets across a couple can use two £3,000 allowances. Your main home is normally covered by Private Residence Relief. The rules apply UK-wide, including Scotland, as CGT is not devolved. Use the Capital Gains Tax calculator to work out your bill on a sale.