UK Capital Gains Tax Rates 2026/27: The Complete Guide

for basic-rate taxpayers and 24% for higher and additional-rate taxpayers. These rates apply to all assets, including shares and property. The tax-free allowance is £3,000, and Business Asset Disposal Relief is now charged at 18%.

Key Takeaways

• CGT rates for 2026/27 are 18% (basic rate) and 24% (higher/additional rate): the same for shares, second homes, and other assets.
• The Capital Gains Tax allowance is £3,000 for individuals and £1,500 for most trusts.
• The allowance has been slashed from £12,300 to £3,000 in just three years: a 75% cut.
• Trustees and personal representatives pay a flat 24% on all gains.
• Business Asset Disposal Relief (BADR) rose to 18% from 6 April 2026 (up from 14% the year before).
• CGT rates are the same across the whole UK, including Scotland, but your Scottish income tax bands can change how much of your gain is taxed at 18% versus 24%.

Here's Something Most People Don't Know About CGT

Here's a figure that surprises almost everyone: only around 348,000 people paid Capital Gains Tax in a recent tax year, compared with 34.6 million who paid income tax (House of Commons Library). That makes Capital Gains Tax feel like a niche, rich-person's problem, something you'll never have to worry about.

But that's exactly the trap.

The tax-free allowance has been quietly cut from £12,300 in 2022/23 to just £3,000 today. That's a 75% reduction. So the sale that would have slipped comfortably under the threshold a few years ago could now leave you with a bill and a 60-day deadline to report it if it's UK residential property.

If you're selling shares, a second home, a rental, or a slice of your business this year, this guide breaks down exactly what you'll owe, how the rate is worked out, and where people trip up. No jargon. Just the numbers you actually need.

What Is Capital Gains Tax and How Does It Work?

Capital Gains Tax (CGT) is the tax you pay on the profit you make when you sell or dispose of an asset that's gone up in value. The keyword is profit. You're not taxed on the full sale price only on the gain.

Sell shares you bought for £5,000 for £15,000, and your gain is £10,000. That £10,000 is what CGT looks at, not the £15,000.

CGT typically applies when you sell:

• Shares and investments that aren't held in an ISA
• A second home or rental property
• Business assets, including all or part of a business
• Personal possessions worth more than £6,000 (excluding your car)
• Cryptocurrency held as an investment

You usually don't pay Capital Gains Tax when you sell your main home (thanks to Private Residence Relief), and anything inside an ISA is completely free of CGT.

Crucially, Capital Gains Tax isn't a flat rate. The percentage you pay depends on your total taxable income which is where things get a little more involved.

What Are the Capital Gains Tax Rates for 2026?

For disposals made on or after 6 April 2026, the CGT rates are:

Source: GOV.UK - Capital Gains Tax rates and allowances

The big thing to understand: since 30 October 2024, the same rates apply to every type of asset. There's no longer a separate, higher rate for residential property. Whether you're selling shares or a buy-to-let flat, the rates are 18% and 24% across the board.

Do I Pay 18% or 24% Capital Gains Tax?

This is the question that catches people out because the answer depends on your income, not just your gain.

You don't automatically pay one rate. Instead, you work it out like this:

1. Calculate your taxable income (your income minus your Personal Allowance).
2. Work out your total taxable gain, then deduct the £3,000 annual exempt amount.
3. Add the gain on top of your income.
4. Any part of the gain that falls within the basic-rate band (up to £37,700) is taxed at 18%.
5. Any part that sits above the basic-rate band is taxed at 24%.

So a gain can be taxed at both rates in the same year. Think of your gain as sitting "on top" of your income and filling up whatever's left of the basic-rate band first.

A quick worked example for Capital Gains Tax

Say your taxable income is £30,000 and you make a £20,000 gain (after the £3,000 allowance):

That's an effective rate of around 21.7% neither the full 18% nor the full 24%. This split-rate calculation is exactly why so many people get their sums wrong.

Do I Pay 18% or 28% Capital Gains Tax?

If you've seen 28% quoted somewhere, that figure is out of date. The 28% rate used to apply to residential property gains for higher-rate taxpayers, but that changed.

Here's how the higher rate has moved:

• Up to 5 April 2024: residential property was taxed at 28% for higher-rate taxpayers.
• From 6 April 2024: it dropped to 24%.
• From 30 October 2024: all assets aligned at 18% / 24%.

So for 2026/27, 28% no longer exists as a standard CGT rate. The most you'll pay on a standard disposal is 24%. If an old article or calculator is still showing 28%, it hasn't caught up with the rules.

What Is the Capital Gains Tax Allowance for 2026/27?

The Capital Gains Tax allowance, officially the Annual Exempt Amount (AEA), is the amount of gains you can make each tax year before any Capita Gains Tax is due.

Source: GOV.UK

The allowance has fallen off a cliff. At £3,000, it's a quarter of what it was in 2022/23. That's the single biggest reason more people are being pulled into paying Capital Gains Tax; the rates haven't jumped, but the tax-free buffer has shrunk dramatically.

One useful tip: the allowance resets every tax year and can't be carried forward. If you're planning to sell several assets, spreading disposals across two tax years can mean using two years' worth of allowances.

What Is the Capital Gains Tax Rate on the Sale of Shares?

Shares follow the same rules as everything else in 2026/27. Gains on shares (held outside an ISA or pension) are taxed at:

• 18% if the gain falls within your basic-rate band
• 24% if it falls above it

The obvious way to protect share gains is to hold investments inside a Stocks and Shares ISA, where no CGT applies at all. With a £20,000 annual ISA allowance, this is one of the simplest ways to shelter future gains from tax entirely.

Capital Gains Tax in Scotland: Is It Different?

This one trips people up constantly. Capital Gains Tax is a UK-wide tax, not a devolved one. So the rates in Scotland are the same as in England, Wales and Northern Ireland: 18% and 24%.

But here's the nuance. The Scottish Government sets its own income tax bands, and CGT is worked out by stacking your gain on top of your income. Because Scottish income tax bands differ from the rest of the UK, a Scottish taxpayer's income can fill up the UK basic-rate band (£37,700) at a different point.

In plain terms: the Capital Gains Tax percentages are identical, but where your income sits can affect how much of your gain gets taxed at 18% versus 24%. If you're a Scottish taxpayer with a significant gain, it's worth having the calculation checked properly.

What Capital Gains Tax Reliefs Can Lower Your Bill?

A few reliefs can meaningfully reduce what you owe:

• Business Asset Disposal Relief (BADR): A reduced 18% rate on qualifying business disposals, up to a £1 million lifetime limit. Note this rate rose from 14% to 18% on 6 April 2026, so its advantage now only really bites where gains would otherwise be taxed at 24%.
• Investors' Relief: An 18% rate on qualifying shares in unlisted trading companies, subject to a £1 million lifetime limit.
• Private Residence Relief: Removes Capital Gains Tax on the sale of your main home.
• Spouse and civil partner transfers: Assets moved between spouses are on a "no gain, no loss" basis a smart way to use both partners' £3,000 allowances.

Getting the right relief on the right disposal is where a good accountant earns their fee. The wrong claim, or a missed one, can cost thousands.

TL;DR on Capital Gains Tax in 2026/27 in the UK

• UK CGT rates for 2026/27 are 18% and 24%. Basic-rate taxpayers pay 18% on gains within their basic-rate band; higher and additional-rate taxpayers pay 24%.
• The same rates apply to shares and property; the old 28% residential property rate is gone.
• The annual CGT allowance is £3,000, down 75% from £12,300 in 2022/23.
• The rate you actually pay depends on your income plus your gain; a single gain can be taxed at both 18% and 24%.
• CGT rates are identical in Scotland, but Scottish income tax bands can shift how much falls into each rate.
• BADR and Investors' Relief are now 18%, and trustees pay a flat 24%.

Don't Guess Your CGT; Get It Right the First Time with Debitam

The rates are simple on paper. The calculation isn't. Split-rate gains, shrinking allowances, 60-day property reporting deadlines, and reliefs that only apply if you claim them correctly it's easy to overpay, or worse, underpay and face a penalty.

That's where Debitam comes in. Trusted by 26,000 businesses across the UK with 4.8, the excellently rated best online accounting firm on Trustpilot based on more than 6,100 reviews, we help small business owners and individuals handle CGT calculations, self-assessment, and reporting accurately, on time, and without the jargon. No hidden fees. No last-minute panic. Just clear answers from accountants who deal with HMRC every day.

Selling an asset this tax year? Get in touch with Debitam before you file and make sure you only pay what you actually owe.

Frequently Asked Questions

What are the Capital Gains Tax rates for 2026?

For the 2026/27 tax year, CGT is charged at 18% for basic-rate taxpayers (on gains within the basic-rate band) and 24% for higher and additional-rate taxpayers. Trustees and personal representatives pay a flat 24%. These rates apply to all asset types, including shares and property.

What is the tax rate on capital gains for FY 2026-27?

The Capital Gains Tax rate for the 2026/27 financial year is 18% or 24%, depending on your total taxable income. Gains falling within the basic-rate band (up to £37,700) are taxed at 18%, and anything above it is taxed at 24%.

What is the new Capital Gains Tax rate in the UK?

The current CGT rates are 18% and 24%. The 24% rate replaced the old 28% residential property rate, and since 30 October 2024 the same rates apply to every asset type. Business Asset Disposal Relief also rose to 18% from 6 April 2026.

How much is the Capital Gains Tax allowance for 2026/27?

The Capital Gains Tax allowance (Annual Exempt Amount) is £3,000 for individuals and £1,500 for most trusts in 2026/27. This is the amount of gains you can make tax-free each year, and it cannot be carried forward.

Do I pay Capital Gains Tax when I sell my house?

You usually don't pay CGT when selling your main home, thanks to Private Residence Relief. However, CGT can apply to second homes, buy-to-let properties, and homes you've let out or used for business. For UK residential property, any gain must be reported and paid within 60 days of completion.

How can I reduce my Capital Gains Tax bill?

Common ways include using your £3,000 annual allowance, holding investments in an ISA, transferring assets to a spouse to use both allowances, offsetting capital losses, spreading disposals across tax years, and claiming reliefs like Business Asset Disposal Relief where eligible.