Published: June 2026 | Fact-Checked & Audited By: David Vance, CTA FCA (Chartered Tax Advisor & Accountant)
This guide is fully updated for the 2026/27 HMRC tax year. All calculations and tax rules have been audited against official UK legislation.
Capital Gains Tax (CGT) is the tax you pay on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that has increased in value. For the 2026/27 tax year, the annual tax-free allowance stands at just £3,000.
Current CGT Rates
- Shares and Cryptoassets: Basic rate taxpayers pay 10%. Higher and additional rate taxpayers pay 20%.
- Residential Property: Basic rate taxpayers pay 18%. Higher and additional rate taxpayers pay 24%.
Estimate your tax liability on asset sales using our Capital Gains Tax Calculator.
Frequently Asked Questions (FAQ)
Q: What is the CGT allowance for 2026/27?
A: The Capital Gains Tax annual tax-free allowance is £3,000. You only pay tax on gains that exceed this threshold.
Q: Do I pay CGT when selling my main home?
A: Usually no. If the property was your main home for the entire duration of ownership, Private Residence Relief (PRR) applies and you pay no CGT.
Q: How do I report capital gains on property?
A: Any taxable gains from selling residential property in the UK must be reported and paid to HMRC within 60 days of the sale completion.