Guide

Capital Gains Tax for Higher-Rate Taxpayers 2026/27

Written by James Whitfield · Updated August 2026 Checked against 2026/27 HMRC rates

If your income has already filled the basic-rate band, your gains have almost nowhere soft to land. Above the £3,000 tax-free allowance, most of what you make is charged at the 24% higher rate¹. But "most" is not always "all" - if a sliver of basic-rate band is left, part of the gain still gets 18%. Getting that boundary right is where the real money sits.

Key takeaways

Once income passes £50,270, gains above the allowance are taxed at 24% - the same rate on shares, crypto and property.¹
The first £3,000 of gains each year is tax-free.²
If any basic-rate band is left, a slice of the gain still gets 18% - the split happens at £50,270 of combined income and gain.³
A gain is never income, so it can't cost you your personal allowance or trigger the child benefit charge.
A pre-sale transfer to a spouse is tax-neutral and hands you a second £3,000 allowance plus their rate bands.²

2026/27 rates at a glance

18% - on the slice of gain that fits within any remaining basic-rate band
24% - on gain above the basic-rate band
£3,000 - annual exempt amount per person²
Personal allowance £12,570; basic-rate band tops out at £50,270 gross

A single 24% higher rate now covers property, shares, crypto and most other assets since the October 2024 Budget¹ - the old 28% residential-property rate has gone. Gains qualifying for Business Asset Disposal Relief or Investors' Relief are taxed at 18% even for higher-rate taxpayers, and carried interest is taxed as income from 6 April 2026.

How income sets your CGT rate

HMRC measures your income first, then lays the gain on top of whatever band is left.³ The order is what trips people up:

Taxable income = gross income − the £12,570 personal allowance.
Remaining basic-rate band = £50,270 − your gross income (never below zero).
Knock the £3,000 annual exempt amount off the gain.
Gain that fits the leftover band is 18%; the rest is 24%.

Earn £50,270 or more and step 2 gives zero - the whole taxable gain is 24%. That is where most higher earners sit.

Worked example: the whole gain at 24%

Alex earns £60,000 and sells shares for a £20,000 gain. His £60,000 salary is already well past £50,270, so no basic-rate band is left - none of the gain qualifies for 18%:

Worked example — higher-rate taxpayer, £20,000 share gain

Salary	£60,000
Income is over £50,270, so £0 basic-rate band remains for the gain	£0 at 18%
Share gain	£20,000
Less annual exempt amount	−£3,000
Taxable gain (all at 24%)	£17,000
CGT due (£17,000 × 24%)	£4,080

The 18% band only reappears if income dips below £50,270. If Alex paid enough into a pension to bring his income to, say, £47,430, roughly £2,840 of gain would drop to 18% - saving about £170 (£2,840 × 6%).

Where higher-rate taxpayers slip up

Assuming the gain bumps you into a higher income bracket. It doesn't. A gain is not income, so it never costs you your personal allowance or triggers the High Income Child Benefit Charge - though income between £100,000 and £125,140 is a separate story worth advice.
Forgetting the 60-day property clock. Residential gains must be reported and paid within 60 days of completion, separate from Self Assessment. Late filing is an automatic £100 penalty.
Not using a spouse. A pre-sale transfer to a spouse or civil partner is a no-gain/no-loss transfer - it wastes nothing and unlocks their £3,000 allowance and their bands.
Selling everything in one tax year. Two disposals either side of 5 April bank two £3,000 allowances.

Legitimate ways to trim the bill

Pension or Gift Aid. Both extend your basic-rate band, so a slice of gain drops from 24% to 18% - £60 saved per £1,000 shifted. Watch the £60,000 annual allowance (worked example).
Spread disposals across tax years to use two annual exempt amounts and stagger the income stacking.
Bring in capital losses - once reported to HMRC, earlier-year losses cut the taxable gain pound for pound.
Shelter future growth in an ISA. A "Bed & ISA" moves holdings inside the wrapper, though the funding sale crystallises the gain to date.

Calculate your CGT as a higher-rate taxpayer

Enter your income and gain to see the split between 18% and 24% at 2026/27 rates.

Open the CGT calculator

Frequently asked questions

What CGT rate do I pay if I earn over £50,270?

All of your taxable gain (above the £3,000 annual exempt amount) is charged at 24%. There is no remaining basic-rate band for any of it to fall into at 18%. The £3,000 exempt amount is still deducted before the rate applies.

Can pension contributions move me from 24% to 18%?

Yes, in part. A pension contribution extends your basic-rate band by the grossed-up amount. If that opens up room below £50,270, a slice of your gain is taxed at 18% instead of 24% - worth £60 for every £1,000 shifted. Contributions are capped by the annual allowance, normally £60,000 or 100% of your earnings if lower.

Does a capital gain push me into a higher income tax bracket?

No. Capital gains are not income and do not change your income tax rate. The only interaction is that your income is measured first to decide how much of the gain gets 18% versus 24% - not the other way round. One caveat: if your income is between £100,000 and £125,140, the personal allowance taper is in play, so take advice before realising a large gain.

Is the CGT rate higher for residential property?

No longer. Since October 2024 the higher rate on residential property is 24% - the same as on shares, crypto and other assets. Basic-rate taxpayers pay 18% on both. The property-versus-shares distinction now only matters for Private Residence Relief and the 60-day reporting deadline, not the rate.

How does the £3,000 exempt amount work for higher earners?

Every individual gets £3,000 regardless of income. It is deducted from your total net gains before the rate applies. If total gains are £3,000 or less, no CGT is due; if they are more, only the excess is taxable - and for a higher-rate taxpayer that excess is largely at 24%.

This page is for general information only and is not financial, tax or legal advice. CGT interacts with income tax in ways that depend on your circumstances. Consult a qualified tax adviser before making disposal or planning decisions.

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.

Verified against published HMRC and GOV.UK guidance.