UK Capital Gains Tax Rates 2026/27: CGT Increase, Autumn Budget Rules & Calculator

The UK Capital Gains Tax (CGT) regime has undergone its most radical overhaul in over a decade. The historic distinction between lower-taxed financial investments (shares, investment funds, cryptoassets) and residential property has been abolished in favor of a single, unified two-tier rate structure of 18% and 24%. At the same time, business owners face phased tax increases on company sales under Business Asset Disposal Relief (BADR), while the annual tax-free allowance remains severely restricted at just £3,000.

Whether you are selling company shares, liquidating a cryptocurrency portfolio, disposing of a buy-to-let rental property, or planning a business exit, understanding how your total taxable income dictates your CGT rate is critical to avoiding unexpected HMRC tax liabilities. In this comprehensive master guide, our chartered tax advisers and financial analysts break down the statutory rate schedules, explain the interaction between Income Tax and CGT bands, detail 5 worked numerical case studies, outline mandatory reporting deadlines (including the strict 60-day residential property rule), and demonstrate 6 legitimate strategies to legally mitigate your CGT bill.

1. The Autumn Budget Rate Alignment: What Changed & Why

For many years, the UK operated a split Capital Gains Tax system. Disposals of residential property that did not qualify for Private Residence Relief were taxed at 18% (basic rate) and 24% (higher rate, reduced from 28% in April 2024). In contrast, disposals of listed equities, unquoted private shares, investment funds, and cryptoassets were taxed at preferential rates of 10% (basic rate) and 20% (higher rate).

The Autumn Budget abolished this preferential treatment by increasing the standard CGT rates on non-residential assets to match residential property:

• Basic Rate Non-Property Gains: Increased from 10% to 18% (an 80% relative tax increase).
• Higher Rate Non-Property Gains: Increased from 20% to 24% (a 20% relative tax increase).
• Residential Property Rates: Remained unchanged at 18% and 24%, achieving a unified rate across asset classes.
• Business Asset Disposal Relief (BADR): Increased from 10% to 14% from 6 April 2025, and increases to 18% from 6 April 2026.
• Investors’ Relief (IR): Lifetime qualifying gains limit reduced from £10,000,000 to £1,000,000, with rates matching BADR (14% in 2025/26, 18% in 2026/27).
• Carried Interest (Private Equity): Increased from 28% to 32% from April 2025, moving into the full Income Tax framework from April 2026.

To calculate the exact tax impact on your personal asset portfolio, use our interactive Capital Gains Tax Calculator and review residential real estate rules in our Property CGT Calculator.

2. Master CGT Rate Schedule (2026/27 Tax Year)

The following table provides the definitive statutory Capital Gains Tax rates applicable across all major asset categories in the 2026/27 tax year:

To compare personal capital gains with corporate dividend taxes, explore our guide on How Dividend Tax is Calculated and use our Dividend Tax Calculator.

3. The £3,000 Annual Exemption, Allowable Costs & Capital Loss Offsetting

Before applying the 18% or 24% tax rate, you must compute your net chargeable gain in accordance with the Taxation of Chargeable Gains Act 1992 (TCGA 1992).

1. The £3,000 Annual Exempt Amount

Every UK resident individual receives an annual tax-free Capital Gains Tax allowance of £3,000 for 2026/27. Key rules governing the allowance include:

• Use-It-or-Lose-It: The £3,000 allowance cannot be carried forward to future tax years. If unutilised by 5 April, it expires permanently.
• Individual Allocation: Each individual spouse or civil partner has their own separate £3,000 allowance, enabling married couples to shelter up to £6,000 of capital gains per tax year.
• Trust Exemption: Trustees are entitled to a 50% allowance of £1,500 (divided equally if the settlor created multiple trusts, down to a minimum of £300).

2. Deductible Allowable Costs

You can legitimately deduct specific capital expenditure from your gross disposal value:

• Acquisition Costs: Purchase price, broker commissions, Stamp Duty Land Tax (SDLT), and conveyancing legal fees.
• Disposal Costs: Estate agent fees, auction fees, advertising, stockbroker commissions, and legal contract fees.
• Capital Improvements: Substantial enhancements that add value to the asset (e.g. building an extension on a property or acquiring patent protections). General maintenance and repairs (e.g. repainting or fixing a roof) are revenue expenses and cannot be deducted against CGT.

3. Capital Loss Offsetting & The 4-Year Claim Window

If you dispose of an asset at a loss, that loss can offset taxable gains realized in the same tax year. If your losses exceed your current-year gains, the surplus losses can be carried forward indefinitely to offset future capital gains.

Statutory Claim Rule (Section 16 TCGA 1992): Unallowable capital losses must be formally registered with HMRC on a Self Assessment return within 4 years of the end of the tax year in which the loss occurred. Once registered, carried-forward losses only need to be deducted up to the point where taxable gains are reduced to the £3,000 annual exemption—they never waste your tax-free allowance!

4. How Your Income Tax Band Determines Your CGT Rate (“Income Stacking”)

In the UK tax system, Capital Gains Tax does not operate in isolation. Your capital gains are “stacked” on top of your taxable income (salary, trading profits, dividends, rental income, and pensions) after deducting your £12,570 Personal Allowance.

The basic rate Income Tax threshold for 2026/27 is £50,270 (representing the £12,570 Personal Allowance + £37,700 basic rate band). The rate you pay on your capital gains depends strictly on where your gains sit relative to this £50,270 threshold:

For company directors balancing salary and dividends, see our guides on Dividend vs. Salary for Directors and explore corporate tax rates with our Corporation Tax Calculator.

5. 5 Detailed Worked Numerical Case Studies

Let us examine 5 real-world calculations illustrating how the 2026/27 Capital Gains Tax rules apply across various asset classes and income levels.

Case Study 1: Share Portfolio Disposal (Mixed Tax Bands)

Scenario: An investor with an employment salary of £35,000 sells listed shares, realizing a gross capital gain of £43,000. Allowable trading and broker costs are £1,000.

• Gross Gain after Selling Costs: £43,000 − £1,000 = £42,000.00.
• Less: Annual Exemption: £42,000 − £3,000 = £39,000.00 Net Taxable Gain.
• Unused Basic Rate Band: £50,270 (Higher rate threshold) − £35,000 (Salary) = £15,270.00.
• Portion Taxed at 18% Lower Rate: £15,270.00 × 18% = £2,748.60.
• Portion Taxed at 24% Higher Rate: (£39,000.00 − £15,270.00 = £23,730.00) × 24% = £5,695.20.
• Total Capital Gains Tax Liability: £2,748.60 + £5,695.20 = £8,443.80.

Case Study 2: Buy-to-Let Residential Property Disposal

Scenario: A landlord earning £60,000 salary sells a buy-to-let residential property for £320,000. It was purchased for £210,000. Purchase legal fees and stamp duty were £8,000, sale estate agency and legal costs were £5,000, and allowable capital enhancement (new central heating & structural renovation) cost £12,000.

• Gross Capital Gain: £320,000 − (£210,000 + £8,000 + £12,000 + £5,000) = £85,000.00.
• Less: Annual Exemption: £85,000 − £3,000 = £82,000.00 Net Taxable Gain.
• Tax Rate Applied: Since the landlord’s salary (£60,000) exceeds £50,270, the basic rate band is £0. All gains are taxed at 24%.
• Total CGT Due: £82,000.00 × 24% = £19,680.00.
• Reporting Deadline: Must be reported and paid within 60 days of completion via HMRC’s UK Property Disposal service.

Case Study 3: Company Business Exit under BADR (£500,000 Gain)

Scenario: A director sells 100% of their trading company shares in 2026/27, realizing a £500,000 gain that qualifies for Business Asset Disposal Relief (BADR).

To evaluate business sale structuring, compare incorporation models with our Sole Trader vs Ltd Calculator.

Case Study 4: Crypto Trading Disposal with Previous Year Loss Offsetting

Scenario: A cryptocurrency trader with £40,000 salary realizes £25,000 in crypto capital gains in 2026/27. They have £10,000 of unused capital losses from crypto disposals in 2023/24 registered with HMRC.

• Gross Gain in Current Year: £25,000.00.
• Less: Carried-Forward Losses: Under Section 16 TCGA 1992, losses are deducted only to reduce net gains to the £3,000 annual exemption: £25,000 − £10,000 = £15,000.00.
• Less: Annual Exemption: £15,000 − £3,000 = £12,000.00 Net Taxable Gain.
• Remaining Basic Rate Band: £50,270 − £40,000 = £10,270.
• Tax at 18% Lower Rate: £10,270 × 18% = £1,848.60.
• Tax at 24% Higher Rate: (£12,000 − £10,270 = £1,730) × 24% = £415.20.
• Total CGT Payable: £1,848.60 + £415.20 = £2,263.80.

Case Study 5: The SIPP Pension Basic Band Extension Strategy (Saving 6% CGT)

Scenario: An investor earns £45,000 salary and has a £30,000 taxable capital gain on non-ISA shares. Normally, £24,730 of that gain would spill over the £50,270 threshold into the 24% tax bracket. To mitigate this, the investor makes an £8,000 net personal pension contribution into a SIPP.

By contributing to a pension, the investor not only receives £2,000 in government top-up tax relief and higher-rate relief, but also pulls £10,000 of capital gains out of the 24% bracket into the 18% bracket, saving an extra £600 in CGT. Model pension tax relief in our Salary Sacrifice Calculator.

6. Business Asset Disposal Relief (BADR) & Investors’ Relief Overhaul

For entrepreneurs and business founders, the Autumn Budget introduced substantial phased changes to Business Asset Disposal Relief (BADR) (formerly Entrepreneurs’ Relief) and Investors’ Relief (IR):

• Statutory Qualifying Conditions for BADR:
  • You must be an officer or employee of the trading company (or group).
  • You must hold at least 5% of the ordinary share capital and voting rights.
  • You must be entitled to at least 5% of distributable profits and assets on winding up.
  • All qualifying conditions must be satisfied throughout a continuous period of at least 2 years up to the date of disposal.
• Phased Rate Increases:
  • Prior to 6 April 2025: 10% rate.
  • 6 April 2025 – 5 April 2026: 14% rate.
  • 6 April 2026 onwards: 18% rate.
• Lifetime Limit: Stays fixed at £1,000,000. Gains exceeding £1m are taxed at the standard 24% higher rate.
• Investors’ Relief (IR): The lifetime limit was slashed from £10 million to £1 million, aligning with BADR. The tax rates mirror BADR (14% in 2025/26 and 18% in 2026/27).

To ensure company dividend distributions prior to sale are legally compliant, consult our detailed guide on Illegal Dividends in a UK Limited Company.

7. Reporting & Payment Deadlines: The 60-Day Property Rule vs. Self Assessment

HMRC enforces two distinct reporting mechanisms depending on the asset sold:

For guidance on managing Self Assessment deadlines and tax bills, see our HMRC Payment on Account Guide and review company vehicle tax rules in our Company Car Tax & BIK Rates Guide.

8. 6 Legitimate Tax Planning Strategies to Minimize Capital Gains Tax

Investors and business owners can use several statutory mechanisms to reduce, defer, or eliminate Capital Gains Tax:

1. Bed & ISA Transfers (Annual £20,000 Tax Shelter)

While you cannot directly transfer shares into a Stocks and Shares ISA, you can execute a “Bed & ISA” transaction. You sell shares from a general investment account (utilising your £3,000 CGT allowance) and immediately repurchase them within your ISA wrapper up to your £20,000 annual ISA limit. All future dividends and capital gains within the ISA are 100% tax-free forever.

2. Inter-Spousal Asset Transfers (Section 58 TCGA 1992)

Transfers of assets between married couples or civil partners living together take place on a “no gain, no loss” basis under Section 58 TCGA 1992. By transferring half of an asset to your spouse prior to sale, you can:

• Utilise two £3,000 annual exemptions (£6,000 total tax-free gain).
• Utilise a spouse’s unused basic rate band to access the 18% lower rate rather than paying 24%.

3. SIPP Pension Gross-Up Contributions

As demonstrated in Case Study 5, contributing to a personal pension extends your basic rate tax band, pulling capital gains out of the 24% bracket into the 18% bracket for an immediate 6% CGT reduction alongside pension tax relief.

4. Multi-Year Phased Disposals

If you hold a large portfolio of unrealized gains, sell portions across consecutive tax years (e.g. selling in March and April) to capture multiple £3,000 annual exemptions and basic rate bands.

5. EIS Deferral Relief & SEIS Reinvestment Relief

Investing in qualifying Enterprise Investment Scheme (EIS) shares allows you to defer capital gains until the EIS shares are sold. Investing in Seed Enterprise Investment Scheme (SEIS) shares provides a 50% Capital Gains Tax exemption on reinvested gains up to £100,000.

6. Private Residence Relief (PRR)

If you sell your main home, gains are 100% exempt from CGT under Section 222 TCGA 1992. If you lived in the property as your primary residence before letting it out, you can claim relief for the period of actual occupation plus the final 9 months of ownership.

9. Frequently Asked Questions (FAQs)

What are the UK Capital Gains Tax rates for 2026/27?

For 2026/27, the standard Capital Gains Tax rates are 18% for basic rate taxpayers and 24% for higher and additional rate taxpayers across both residential property and non-residential assets (shares, crypto, funds). Business Asset Disposal Relief (BADR) is 18% up to a £1,000,000 lifetime limit.

How did the Autumn Budget change Capital Gains Tax?

The Autumn Budget increased standard rates on shares and crypto from 10% and 20% to 18% and 24%, unifying them with residential property. It also increased the BADR rate to 14% (from April 2025) and 18% (from April 2026), and cut the Investors’ Relief cap from £10m to £1m.

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

The UK annual exempt amount is frozen at £3,000 per individual (£1,500 for trusts). Any net gains above £3,000 are subject to Capital Gains Tax.

How is my CGT rate determined by my income?

Your capital gains are added on top of your taxable income. Any portion of your gain that falls within your unused basic rate band (up to £50,270) is taxed at 18%. Any portion of the gain exceeding £50,270 is taxed at 24%.

What is the deadline for reporting property capital gains?

Disposals of UK residential property generating a taxable gain must be reported and the tax paid within 60 days of completion using HMRC’s online UK Property Disposal service.

Can I transfer assets to my spouse to avoid Capital Gains Tax?

Yes. Transfers between spouses or civil partners are tax-free (no gain/no loss). This allows married couples to combine their £3,000 allowances (£6,000 total) and utilize a lower-earning partner’s 18% basic rate tax band.

How do pension contributions reduce Capital Gains Tax?

Making a gross personal pension contribution extends your basic rate tax band upwards. This pulls capital gains out of the 24% higher bracket into the 18% basic bracket, generating an immediate 6% CGT saving in addition to pension income tax relief.

What is the BADR lifetime limit for business sales?

The lifetime limit for Business Asset Disposal Relief is £1,000,000 of qualifying gains. Gains up to £1m are taxed at 18% (in 2026/27), and any excess is taxed at the standard 24% rate.

How long do I have to claim capital losses with HMRC?

Under Section 16 TCGA 1992, you must report capital losses to HMRC on a Self Assessment return within 4 years of the end of the tax year in which the loss occurred. Once claimed, losses can be carried forward indefinitely.

Do I pay CGT on assets held inside an ISA?

No. All investments, dividends, and capital gains generated within a Stocks and Shares ISA or Cash ISA are 100% exempt from UK Capital Gains Tax and Income Tax.

10. Statutory & Legislative References

• Taxation of Chargeable Gains Act 1992 (TCGA 1992):
  • Section 1 & 1H – Charge to Capital Gains Tax and statutory rates schedule (18% and 24%).
  • Section 1K – Annual exempt amount (£3,000 frozen limit).
  • Section 16 – Computation and carry forward of allowable capital losses.
  • Section 58 – Transfers between spouses and civil partners (No gain / no loss rule).
  • Section 169H to 169V – Business Asset Disposal Relief (BADR) qualifying conditions and rates.
  • Section 222 – Private Residence Relief (PRR) on main dwelling houses.
• Finance Act 2024 / Finance Act 2025:
  • Provisions aligning non-residential CGT rates (18%/24%) and phasing BADR rate increases.
• HMRC Internal Manuals:
  • CG10200+: Capital Gains Manual – Introduction and Computational Rules.
  • CG63950+: Business Asset Disposal Relief Provisions and Rates.
  • CG73800+: 60-Day Residential Property Reporting Procedures.