UK Tax Tools

UK Capital Gains Tax Rates 2026/27

CGT rates by band and asset type, the £3,000 exempt amount, and how the bands stack on your income

CGT rates by band and asset type, 2026/27

Asset type Basic rate band Higher/additional rate band
Shares, funds, other assets 18% 24%
Residential property 18% 24%
Business Asset Disposal Relief 18% flat, up to £1,000,000 lifetime
Investors' Relief 18% flat, up to £1,000,000 lifetime

Annual Exempt Amount: £3,000 per person, deducted before any rate is applied. To model your own numbers use the Capital Gains Tax Calculator.

How the bands interact with your income

A capital gain is taxed on top of your other taxable income, not on its own. With the standard £12,570 Personal Allowance, your basic rate band covers taxable income up to £37,700. Whatever room is left in that band once your income is accounted for is where the basic CGT rate applies; the rest of the gain — and all of it if your income already uses up the basic rate band — is taxed at the higher rate.

One rate change, unified since 30 October 2024

Before the Autumn 2024 Budget, shares and other non-property assets were taxed at lower rates (10%/20%) than residential property (18%/24%). From 30 October 2024 both asset types moved to the same 18%/24% rates, so 2026/27 and 2025/26 figures shown here apply equally to a share portfolio, a crypto disposal, or a buy-to-let sale.

CGT rates by tax year

Tax year Other assets (basic/higher) Residential (basic/higher) BADR Exempt amount
2026/27 18% / 24% 18% / 24% 18% £3,000
2025/26 18% / 24% 18% / 24% 14% £3,000
2024/25 10% / 20% 18% / 24% 10% £3,000

2024/25 straddled the Budget date: gains on other assets disposed of before 30 October 2024 used 10%/20%, while gains after that date used the 18%/24% rates shown here.

Worked example

Higher-rate taxpayer with £80,000 of other income sells shares for a £20,000 gain in 2026/27. The £3,000 Annual Exempt Amount leaves £17,000 taxable. Their income already exceeds the basic rate band, so the whole taxable gain falls in the higher band: £17,000 × 24% = £4,080.00 of CGT, an effective rate of 20.4% on the full £20,000 gain.

Frequently asked questions

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

18% for gains that fall in your basic rate band and 24% for gains above it — the same rates apply to shares, funds and residential property alike since the rates were unified on 30 October 2024. These rates apply after deducting the £3,000 Annual Exempt Amount.

Do residential property and shares have different CGT rates?

Not any more. Before 30 October 2024, shares and other assets were taxed at 10%/20% while residential property stayed at 18%/24%. From that date the rates were unified — both asset types now pay 18% (basic) and 24% (higher), so 2026/27 and 2025/26 use one set of rates for everything.

Which CGT band does my gain fall into?

Your taxable gain stacks on top of your taxable income, not your gross income. With the standard Personal Allowance the basic rate band runs to £37,700 of taxable income (income after the £12,570 Personal Allowance). Whatever unused basic rate band you have left is taxed at the basic CGT rate; the rest of the gain is taxed at the higher rate. A single large gain can straddle both.

What is the Annual Exempt Amount for CGT in 2026/27?

£3,000 per person. This has been £3,000 since 2024/25, cut down sharply from £6,000 in 2023/24 and £12,300 the year before that. It cannot be carried forward — unused allowance is lost at the end of the tax year.

What is the Business Asset Disposal Relief (BADR) rate?

18% in 2026/27, up from 14% in 2025/26 — a 4-point rise as part of a staged increase from the original 10%. BADR applies to qualifying gains from selling your own trading business or shares in your trading company, up to a £1,000,000 lifetime limit.

What is Investors' Relief and how does it differ from BADR?

Investors' Relief taxes qualifying gains on shares in an unlisted trading company at the same 18% flat rate as BADR, but it's for external investors rather than working directors or employees, and it has its own separate £1,000,000 lifetime limit (cut from £10 million in the October 2024 Budget).

Do I pay CGT when I sell my main home?

Usually not. Private Residence Relief exempts the gain on a property that has been your only or main home for the whole time you owned it, plus the final 9 months. Letting part of the home, a long period of absence, or business use of part of the property can bring some of the gain back into charge.

Sources

Reflects 2026/27 CGT rates and the £3,000 Annual Exempt Amount, verified against gov.uk.

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