UK Capital Gains Tax Rates: What Changed from 2024/25 to 2026/27
Capital Gains Tax rates changed significantly in October 2024 and the Annual Exempt Amount has been reduced from GBP 12,300 in 2022/23 to GBP 3,000. This guide explains every change, current 2026/27 rates, and what they mean for investors and property owners.
A Brief History of CGT Rate Changes
UK Capital Gains Tax has seen repeated changes since 2022. The most significant shift came at the October 2024 Autumn Budget, when Chancellor Rachel Reeves aligned CGT rates for all asset classes and raised the lower rate on non-property assets.
At the same time, the Annual Exempt Amount has been progressively cut from a generous GBP 12,300 in 2022/23 to just GBP 3,000 from 2024/25 onwards. This means far more taxpayers are now liable for CGT on gains that would previously have been exempt.
CGT Rates: Before and After October 2024
| Asset Type | Basic Rate (pre-Oct 2024) | Higher Rate (pre-Oct 2024) | Basic Rate (from Oct 2024) | Higher Rate (from Oct 2024) |
|---|---|---|---|---|
| Residential property | 18% | 28% | 18% | 24% |
| Other assets (shares, etc.) | 10% | 20% | 18% | 24% |
For residential property sellers, the Higher rate reduction from 28% to 24% is a meaningful saving. For investors in shares or funds, the Basic rate rose from 10% to 18% -- a substantial increase that has significantly affected those with gains in the Basic rate band.
The Annual Exempt Amount: 2022/23 to 2026/27
| Tax Year | Annual Exempt Amount |
|---|---|
| 2022/23 | GBP 12,300 |
| 2023/24 | GBP 6,000 |
| 2024/25 | GBP 3,000 |
| 2025/26 | GBP 3,000 |
| 2026/27 | GBP 3,000 |
The reduction in the AEA means that gains above GBP 3,000 per year are now taxable. In practical terms, someone who realises GBP 10,000 in gains now pays CGT on GBP 7,000, whereas in 2022/23 the same gains would have been entirely within the exempt amount.
Which Rate Applies to Your Gain?
CGT rates depend on how much taxable income you have in the year you make the gain. Your capital gain is added on top of your income, and the portion that falls within the Basic rate band (up to GBP 50,270 in total taxable income for 2026/27) is taxed at 18%. Any gain that pushes total income above GBP 50,270 is taxed at 24%.
Example: you have taxable employment income of GBP 40,000 and make a gain of GBP 20,000 after the AEA.
- Remaining Basic rate band: GBP 50,270 minus GBP 40,000 = GBP 10,270
- First GBP 10,270 of gain at 18% = GBP 1,848.60
- Remaining GBP 9,730 of gain at 24% = GBP 2,335.20
- Total CGT: GBP 4,183.80
Reporting and Paying CGT
If you sell UK residential property and make a gain, you must report and pay CGT within 60 days of completion using HMRC's online property reporting service. This is separate from Self Assessment.
For other assets (shares, etc.), gains are reported on your Self Assessment return by 31 January following the tax year end. CGT is payable by the same deadline.
Frequently asked questions
Related reading
How to Make the Most of the CGT Annual Exempt Amount in 2026/27
The CGT Annual Exempt Amount is just £3,000 in 2026/27, down from £12,300 in 2022/23. Here is how to use it strategically across investments, crypto and share sales.
Spreading Capital Gains Across Tax Years and a Spouse to Use Two GBP 3,000 Allowances (2026/27)
The Capital Gains Tax Annual Exempt Amount is just GBP 3,000 in 2026/27. Splitting a disposal across two tax years and transferring assets to a spouse can shelter up to GBP 12,000 of gains, legally and free of tax between spouses.
Divorce With a Family Business: Valuation and Tax Traps in 2026/27
How a family business is valued and divided on divorce, and the Capital Gains Tax and Business Asset Disposal Relief pitfalls of transferring or selling shares as part of a settlement in 2026/27.