Capital Gains Tax
UK Capital Gains Tax by Gain & Year
See how much Capital Gains Tax you would pay on a given gain, after the annual exempt amount, for basic and higher-rate taxpayers. Pick a gain below, or jump to a specific tax year for historical rates and allowances. Enter your own figures in the CGT calculator.
CGT on common gains (2026/27)
CGT by tax year
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UK Capital Gains Tax — Frequently Asked Questions
What is the Capital Gains Tax annual exempt amount for 2026/27?
The Capital Gains Tax (CGT) Annual Exempt Amount is £3,000 for 2026/27. This is the same as 2024/25 and 2025/26 after the Government reduced it from £12,300 in 2022/23 to £6,000 in 2023/24 and then to £3,000 in 2024/25. Each individual gets their own £3,000 exempt amount per tax year — couples jointly disposing of an asset can each use their own allowance, giving £6,000 total. Unused annual exempt amount cannot be carried forward.
What are the CGT rates in 2026/27?
CGT rates in 2026/27 depend on the type of asset and your income tax position: Residential property — 18% (basic-rate taxpayers), 24% (higher/additional-rate taxpayers). All other assets (shares, business assets, most other investments) — 18% (basic-rate), 24% (higher/additional-rate). The rate that applies depends on whether the gain, added to your other taxable income, falls in the basic-rate or higher-rate band. Carried interest (for fund managers) has its own 32% rate from April 2026. Business Asset Disposal Relief (BADR, formerly Entrepreneurs' Relief) rates are 14% in 2025/26 and 18% from 6 April 2026.
When do you pay Capital Gains Tax?
For residential property disposals, you must report and pay CGT within 60 days of completion using the HMRC online "Report and pay Capital Gains Tax" service. For other assets (shares, business assets, non-residential property), CGT is reported via Self Assessment and paid by 31 January following the tax year in which the gain arose. If you are already filing a Self Assessment return, all gains go on that return. Failure to report residential property gains within 60 days triggers penalties and interest.
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Do you pay CGT on selling your main home?
Usually not. Private Residence Relief (PRR) exempts your main home from CGT entirely if you have lived in it as your only or main residence throughout the whole period of ownership. If you let part of your home, worked from home using a dedicated room, or owned the home for a period without living in it, a partial exemption applies and you may owe some CGT on the proportion of the gain relating to the non-residential use or period. You must have nominated the property as your main residence to HMRC if you have more than one home.
How is CGT calculated on shares?
CGT on shares uses the share pool method: all shares of the same class in the same company are pooled, and each disposal uses the average cost of the pool. Steps: (1) Work out the gain = proceeds minus allowable costs (acquisition cost, broker fees, stamp duty on purchase); (2) Subtract the £3,000 Annual Exempt Amount; (3) Add the net gain to your other taxable income to determine whether basic or higher rate applies; (4) Apply 18% (basic rate) or 24% (higher rate). The CGT annual exempt amount is per person per tax year, so a jointly held portfolio can have £6,000 exempt. ISA and pension holdings are exempt from CGT.
What is Business Asset Disposal Relief (BADR)?
Business Asset Disposal Relief (BADR), formerly called Entrepreneurs' Relief, reduces CGT to 14% (2025/26) or 18% (from April 2026) on qualifying gains from disposing of a business or shares in a trading company. To qualify: you must have owned the business (or at least 5% of shares in a trading company) for at least 2 years; been an employee or officer of the company for 2+ years; and the company must have been a trading company (not mainly investment-based). The lifetime limit on gains qualifying for BADR is £1 million. The rate increase from 10% to 14% (April 2025) and 18% (April 2026) significantly reduced its value.
Can losses reduce Capital Gains Tax?
Yes. Capital losses in the same tax year are automatically set against gains, reducing the net gain on which CGT is calculated. If losses exceed gains in the same year, the net loss is carried forward to offset future gains. Carried forward losses must be used before the Annual Exempt Amount is applied — you cannot save carried losses to "shelter" future gains while using the £3,000 AEA this year. Losses must be formally claimed within 4 years of the tax year in which they arose. Assets given to a spouse or civil partner do not trigger CGT at the time of transfer (no-gain, no-loss basis).
What is the difference between income tax and CGT on investments?
Dividends and bond interest are income — taxed at dividend rates (8.75%/33.75%/39.35%) or income tax rates (20%/40%/45%). Capital gains arise when you sell an asset for more than you paid — taxed at CGT rates (18%/24%). The key difference: holding an investment and collecting dividends or interest generates income tax each year; selling at a profit generates CGT in the year of disposal. This is why long-term investors often prefer growth assets (capital appreciation) over income assets (dividends/interest) if they are higher-rate taxpayers. ISAs shelter both income and capital gains permanently.
Does CGT apply on cryptocurrency gains?
Yes. HMRC treats cryptocurrency as a capital asset, not currency. Each disposal (sale, swap, using crypto to buy goods/services, or converting one cryptocurrency to another) is a taxable event. Gains are calculated using the share pool method (same as shares). The £3,000 Annual Exempt Amount applies. Losses can offset gains. CGT rates (18%/24%) apply depending on your income tax position. HMRC has significant data-sharing arrangements with major UK and global crypto exchanges. Crypto gains must be reported via Self Assessment if they exceed the AEA or if total proceeds exceed £50,000 in the tax year.
Do I pay CGT on an inherited property when I sell it?
Usually yes, but only on the gain since the date of inheritance, not since the original purchase by the deceased. When you inherit a property, your base cost for CGT purposes is the probate value — the market value at the date of death used to calculate the estate's Inheritance Tax liability. If you sell it immediately for the probate value, there is little or no CGT. If you hold it for years and it appreciates, you pay CGT on that appreciation minus the Annual Exempt Amount. You do not inherit the deceased's historic gain. If the inherited property was the deceased's main home, Private Residence Relief may still apply for the period they lived in it, reducing the overall gain.