Capital Gains Tax in Scotland 2026/27: How Scottish Income Tax Affects Your CGT Rate

CGT Rates Are Set by Westminster, the Same Across the UK

Capital gains tax rates apply identically in England, Scotland, Wales and Northern Ireland. For 2026/27, the rates are 18% for gains within the basic-rate band and 24% for gains in the higher or additional-rate band. These rates apply to most assets, including shares, second properties and crypto. Business Asset Disposal Relief (BADR) has a 14% rate on qualifying gains up to £1,000,000. Scotland has no power to vary CGT rates.

The annual exempt amount of £3,000 also applies identically across the UK. Gains below £3,000 in a tax year are free from CGT regardless of where the taxpayer lives. These UK-wide rules mean that, for CGT purposes, Scottish taxpayers follow the same rules as English taxpayers, the complication arises only in determining which rate (18% or 24%) applies, because that depends on the taxpayer's total income, and Scottish income tax rates differ from rUK.

How Your Income Determines Your CGT Rate

CGT rates depend on how much of the basic-rate band remains after your other taxable income. The UK-wide basic-rate band runs from £12,570 (the Personal Allowance) to £50,270. Your salary, pension and other non-CGT income fills this band first. Any remaining space is then available to absorb taxable gains at 18%. Gains that exceed the remaining basic-rate band are charged at 24%.

For this calculation, HMRC uses the UK-wide basic-rate limit of £50,270, not the Scottish higher-rate threshold. This is important because the Scottish higher-rate band starts lower, at £43,662 for 2026/27. A Scottish taxpayer with £43,000 of salary is already in the Scottish higher-rate band for income tax purposes, but for CGT purposes they still have £7,270 of the UK basic-rate band remaining (£50,270 − £43,000). Gains up to £7,270 would be charged at 18%, and gains above that at 24%.

Worked Example: Scottish Higher-Rate Taxpayer

Consider a Scottish employee with a salary of £48,000 and a gain of £20,000 from selling shares. For Scottish income tax, the salary puts this person in the Scottish higher-rate band (above £43,662). For CGT, the remaining UK basic-rate band is £50,270 − £48,000 = £2,270. After the annual exempt amount of £3,000, the taxable gain is £17,000.

The first £2,270 of the taxable gain is within the remaining basic-rate band: taxed at 18% = £409. The remaining £14,730 is in the higher-rate band: taxed at 24% = £3,535. Total CGT: approximately £3,944. If this taxpayer were in England with the same salary and gain, the calculation would be identical, because the UK-wide basic-rate limit of £50,270 applies in both cases.

Planning Implications for Scottish Taxpayers

Because Scottish higher-rate income tax applies from a lower threshold (£43,662), Scottish higher-rate taxpayers have less basic-rate band available for CGT than English taxpayers at the same income level in the range £43,662–£50,270. A Scottish taxpayer with £46,000 of salary has £4,270 of basic-rate band for CGT, compared to an English taxpayer with the same salary who also has £4,270, the calculation is the same, showing CGT operates symmetrically.

Strategies to reduce CGT apply equally to Scottish taxpayers: using the annual exempt amount, matching gains with losses, transferring assets to a lower-income spouse, and holding appreciating assets inside an ISA. Scottish taxpayers considering realising gains should also check whether pension contributions (which reduce adjusted net income) can bring more of their gain into the 18% band.