Answers · UK 2025/26
What is the Capital Gains Tax annual exempt amount in 2026/27?
The CGT annual exempt amount (AEA) is £3,000 in 2026/27 — you can make up to £3,000 of capital gains each tax year without paying any CGT. This was reduced from £12,300 in 2022/23.
Full answer
The **Capital Gains Tax Annual Exempt Amount (AEA)** — also called the CGT annual allowance — is the amount of gains you can realise in a tax year before CGT becomes payable. **2026/27 AEA: £3,000 per person** **History of reductions:** | Tax year | AEA | |---|---| | 2022/23 | £12,300 | | 2023/24 | £6,000 | | 2024/25 | £3,000 | | 2025/26 | £3,000 | | **2026/27** | **£3,000** | **How the AEA works:** - It applies **per person**, not per asset or per sale - You cannot transfer unused AEA to a spouse (but spouses/civil partners each have their own £3,000) - Losses from the same or earlier years must be deducted **before** the AEA is applied - The AEA cannot be carried forward if unused **Couples strategy:** Couples where one partner has gains and the other has unused AEA can consider **bed-and-spouse** transactions — transferring assets to the lower-gain spouse before disposal to use both AEAs (£6,000 combined). **Business Asset Disposal Relief (BADR):** BADR still qualifies for a reduced 18% CGT rate (2026/27) on up to £1M lifetime gains. The AEA applies before BADR-qualifying gains are calculated. **Assets subject to CGT:** Shares, unit trusts, second properties, crypto, business assets, most personal possessions over £6,000 — but NOT your main home (usually exempt via Private Residence Relief), ISA/pension gains, or UK gilts. **60-day reporting for property:** Gains on UK residential property must be reported and paid within **60 days** of completion — the AEA applies here too, but the reporting obligation exists even if no tax is due.
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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.