Capital Gains Tax Allowance 2026/27: £3,000 AEA Explained
The Capital Gains Tax allowance (annual exempt amount) for 2026/27 is £3,000 per individual1 - a married couple or civil partners have £6,000 combined. Net gains below your allowance in a tax year are completely free from CGT. It is use-it-or-lose-it: any unused allowance at 5 April is lost and cannot be carried forward. The AEA was cut from £12,300 (2022/23) to £3,000 from 2024/25 onwards.
- The 2026/27 annual exempt amount is £3,000 per individual - a couple has £6,000 between them.1
- It's use-it-or-lose-it: unused allowance at 5 April is gone and can't be carried forward or given to a spouse.1
- The allowance was cut from £12,300 (2022/23) to £6,000, then to £3,000 from 2024/25 - a 76% drop.2
- It's a single figure across all your gains for the year - property, shares and crypto combined.3
- Brought-forward losses are only used down to the allowance, so the £3,000 is never wasted.1
What is the capital gains tax allowance?
The annual exempt amount (AEA) - also called the CGT allowance or personal CGT exemption - is the amount of net capital gains you can make in a tax year without paying any CGT. For 2026/27 it is £3,000 per individual.
Each person gets their own £3,000. Married couples and civil partners have a combined £6,000 if both make disposals. Trusts typically get £1,500, except certain disabled-person trusts which get the full amount.
The AEA is use-it-or-lose-it. Unused allowance at 5 April is permanently lost. You cannot carry it forward or transfer it to a spouse.
How the AEA has changed: 2022 to 2026
The AEA was cut by 76% in two years. An investor with £10,000 of annual gains paid nothing in 2022/23. Now they pay CGT on £7,000. At 18% that is £1,260 extra per year. At 24%, it is £1,680.
How the AEA interacts with losses
Current-year losses must be deducted from current-year gains before the AEA is applied. You cannot defer a current-year loss to preserve the AEA.
Brought-forward losses work differently. They are only applied to the extent needed to bring the net gain down to the AEA level. Excess brought-forward losses are preserved and roll forward again.
| Gains this year | £10,000 |
| Brought-forward losses used (only what's needed) | −£7,000 |
| Net gain, down to the allowance level | £3,000 |
| Covered by the annual exempt amount | −£3,000 |
| Taxable gain | £0 |
| Losses banked for future years | £5,000 |
Only £7,000 of the losses is used - just enough to reach the £3,000 the allowance then shelters. The other £5,000 rolls forward. This stops brought-forward losses being wasted against gains that would have been exempt anyway.
Five ways to make the most of your £3,000 allowance
- Annual crystallisation, review your portfolio before 5 April and realise gains up to £3,000 each year. Over 10 years a couple can crystallise £60,000 of gains tax-free.
- Bed-and-ISA, sell in your general account (using the AEA), immediately rebuy inside an ISA. Future growth is then permanently CGT-free. The 30-day rule does not apply to ISA repurchases.
- Use your spouse's allowance, transfer an asset to your spouse (no-gain/no-loss) and let them sell it using their unused AEA. Both AEAs can be used in the same year.
- Spread disposals across years, instead of selling all at once, sell some before 5 April and the rest after 6 April, using two years' worth of AEA.
- Match gains with losses, if you have loss-making holdings, sell them in the same year as a larger gain to reduce the net amount above the AEA.
The AEA and the ISA wrapper
Assets inside a Stocks and Shares ISA are completely exempt from CGT. No AEA is needed. The annual ISA subscription limit is £20,000 per person for 2026/27. The key long-term move is to use the AEA to migrate holdings from a taxable general account into the ISA each year via bed-and-ISA.
Once inside the ISA, assets grow entirely free of CGT, however large they become. The AEA lets you migrate up to £3,000 of gains per person per year with no tax.
Use our CGT allowance calculator
Calculate how much of your £3,000 annual exempt amount remains after previous disposals this year.
CGT Allowance CalculatorFrequently asked questions
What is the capital gains tax allowance for 2026/27?
£3,000 per individual. Net gains below this in a tax year are free from CGT. Married couples each have their own £3,000, giving a combined £6,000.
Can I carry forward an unused CGT allowance?
No. The annual exempt amount is use-it-or-lose-it. Any unused allowance at 5 April is permanently lost. It cannot be carried forward or transferred to a spouse.
Has the CGT allowance been reduced?
Yes, substantially. The AEA was £12,300 in 2022/23, cut to £6,000 in 2023/24, and reduced to £3,000 from 2024/25 onwards, a 76% reduction.
Does the allowance apply to property gains as well as share gains?
Yes. The £3,000 AEA applies to all capital gains, property, shares, crypto and other assets, in aggregate across a tax year. It is a single allowance applied to your net total gains.
Can my spouse and I both use our £3,000 allowance on the same asset?
Yes, if you both own a share of it. Transfers between spouses and civil partners are no-gain/no-loss, so moving part of an asset to your partner before you sell is tax-neutral and gives the disposal two £3,000 allowances - £6,000 of gain sheltered between you. If your partner's income is lower, some of their slice may also be taxed at 18% rather than 24%. The transfer has to be a genuine, outright gift of a real share in the asset, made before the sale.
Figures reviewed for the 2026/27 tax year (last updated July 2026). Source: GOV.UK.
This page is for general information only and is not tax advice. Consult a qualified tax adviser for personalised guidance.
Sources & references
The rates, allowances and rules in this guide are drawn from the official HMRC and GOV.UK sources below, checked for the 2026/27 tax year. Each link opens the relevant government page in a new tab.
- Capital Gains Tax: allowances (annual exempt amount) www.gov.uk/capital-gains-tax/allowances
- Capital Gains Tax rates and allowances (HMRC) www.gov.uk/government/publications/rates-and-allowances-capital-gains-tax
- Capital Gains Tax — GOV.UK www.gov.uk/capital-gains-tax