Answers · UK 2025/26

What is the Capital Gains Tax allowance for 2026/27?

The Capital Gains Tax annual exempt amount for 2026/27 is £3,000 per person. Gains above this are taxed at 18% (basic rate) or 24% (higher rate), for both residential property and other assets following the October 2024 alignment of rates.

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

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The Capital Gains Tax (CGT) annual exempt amount for 2026/27 is £3,000 per individual — sharply down from £12,300 in 2022/23, after cuts to £6,000 then £3,000. This is the amount of net gains you can realise tax-free each year; it cannot be carried forward if unused. Gains above the allowance are taxed according to where they fall when stacked on top of your taxable income. Following the changes that took effect on 30 October 2024, the rates are now aligned: 18% for gains within the basic-rate band and 24% above it, for both residential property and other assets such as shares. Worked example: a higher-rate taxpayer sells shares for a £15,000 gain. After the £3,000 exemption, £12,000 is taxable at 24% = £2,880. If instead they sold a buy-to-let property with the same gain, the tax would be the same £2,880 now that property and other-asset rates match. Each spouse or civil partner has their own £3,000 allowance, so transferring assets between partners before sale (a no-gain/no-loss transfer) can double the exemption and use both sets of bands. Gains inside an ISA or pension are exempt entirely, and your main home is normally covered by Private Residence Relief. Report and pay CGT on UK residential property within 60 days of completion; other gains go on Self Assessment. Use the Capital Gains Tax calculator to estimate your bill.