Guide

Capital Gains Tax for Higher-Rate Taxpayers 2026/27

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

Once your income passes £50,270, capital gains have nowhere left to hide. There is no basic-rate band still open, so every pound of gain above your £3,000 tax-free allowance is taxed at the flat 24% higher rate¹ - and that is true whether you have sold shares, crypto or a second property. Here is exactly how the sum works, and the handful of legitimate ways higher earners still trim the bill.

Key takeaways

Higher and additional-rate taxpayers pay 24% CGT on gains above the allowance - the same rate on property, shares and crypto.¹
The first £3,000 of gains each tax year is tax-free (the annual exempt amount).²
Gains stack on top of income. Once income fills the basic-rate band, none of the gain gets the 18% rate.
A pension contribution or Gift Aid gift can reopen basic-rate band and pull part of a gain down to 18% - worth £60 per £1,000 shifted.
Transferring an asset to a spouse before sale is tax-neutral and hands you a second £3,000 allowance and a second set of rate bands.²

The rate is 24% - but only above the allowance

CGT sits on top of your income when the rate is worked out. If your taxable income already fills the basic-rate band, your gains have nowhere to fall at 18%, so a single rate applies:

Residential property (second homes, buy-to-let, inherited property): 24%
Everything else (shares, funds, crypto, business assets): 24%

Since the October 2024 Budget there is a single 24% higher rate across property, shares, crypto and most other assets¹ - the old 28% property rate is gone. The split between property and shares now only matters for basic-rate taxpayers, and even then both sit at 18% inside the band. Business Asset Disposal Relief and Investors' Relief gains are 18% at any income level, and carried interest is taxed as income from 6 April 2026.

How gains stack on top of your income

The order HMRC uses is what trips people up. Your income is worked out first and fills the tax bands; the gain is then laid on top of whatever band is left. In practice:

Work out taxable income (gross income minus the £12,570 personal allowance).
See how much basic-rate band is left (the band runs to £50,270 of income).
Knock the £3,000 annual exempt amount off the gain.²
Any gain that fits in the leftover band is taxed at 18%; the rest is 24%.

If your income is £50,270 or more, step 2 gives zero. Nothing is left in the basic-rate band, so the whole taxable gain is charged at 24%. That is the position most higher earners are in.

Worked example: a £30,000 buy-to-let gain

Rachel earns £68,000 in 2026/27 and sells a buy-to-let flat for a £30,000 gain. She has no losses to bring in. Because her income is comfortably over £50,270, the whole gain lands at 24%:

Worked example — higher-rate taxpayer, £30,000 property gain

Salary	£68,000
Income already fills the basic-rate band (over £50,270), so £0 band remains for the gain	£0 at 18%
Property gain	£30,000
Less annual exempt amount	−£3,000
Taxable gain (all at 24%)	£27,000
CGT due (£27,000 × 24%)	£6,480

Because it is residential property, Rachel must report and pay this £6,480 through HMRC's online service within 60 days of completion - not on her next tax return.¹

Can pension contributions cut the rate?

Yes - this is the one lever most higher earners have. A personal pension contribution (or a Gift Aid donation) extends your basic-rate band by the grossed-up amount. If that reopens band below £50,270, a slice of your gain drops from 24% to 18%. Every £1,000 of gain shifted that way saves £60. See pension contributions and CGT for a worked example and the earnings cap.

The maths: say your income is £52,000. Pay £4,216 into a pension and it grosses up to £5,270 with basic-rate relief, extending your basic-rate limit to £55,540. That reopens roughly £3,540 of band, so £3,540 of gain is taxed at 18% instead of 24% - about £212 saved, on top of the income-tax relief on the contribution itself.

Mind the ceiling. The annual allowance is normally £60,000 (or 100% of your earnings if lower), and it tapers for very high incomes. Confirm you have the headroom before you contribute.

Where higher-rate taxpayers trip up

Assuming the gain pushes you into a higher income bracket. It does not. A gain is never income, so it cannot cost you your personal allowance or trigger the High Income Child Benefit Charge.
Missing the 60-day property deadline. Residential gains have their own clock - 60 days from completion, separate from Self Assessment. Late filing brings an automatic £100 penalty and then more.¹
Forgetting the spouse route. Transferring part of an asset to a spouse or civil partner before sale is a no-gain/no-loss transfer, so it wastes nothing - and it unlocks their £3,000 allowance and their rate bands too.
Selling everything in one tax year. Two disposals spread across 5 April use two years' worth of the £3,000 allowance.

How to cut the bill legally

Use your spouse's allowances. A pre-sale transfer to a spouse or civil partner is tax-neutral and lets a couple use two £3,000 allowances and, if their income is lower, some 18% band.
Spread disposals across tax years. Selling in two tax years banks two annual exempt amounts and softens the income stacking.
Bring in capital losses. Losses from earlier years - once reported to HMRC - reduce the taxable gain pound for pound.
Shelter future growth in an ISA. Shares inside an ISA are free of CGT. A "Bed & ISA" moves holdings in, though the sale that funds it does crystallise any gain to date.

Calculate your CGT as a higher-rate taxpayer

Enter your income and gain to see exactly how much CGT is due at 2026/27 rates, split across 18% and 24%.

Open the CGT calculator

Frequently asked questions

What CGT rate do I pay as a higher-rate taxpayer?

If your taxable income exceeds £50,270 - the higher-rate threshold - your entire taxable capital gain (above the £3,000 annual exempt amount) is charged at 24%. This applies to both residential property gains and gains on other assets such as shares and crypto.

Can I reduce my income to access the 18% lower rate?

Yes. Pension contributions reduce your taxable income, which can open up basic-rate band for your capital gains. Gift Aid donations also extend the basic-rate band. If you can bring your taxable income below £50,270 before adding the gain, the portion of the gain that falls below £50,270 is taxed at 18% rather than 24%.

What counts as income for CGT rate purposes?

Taxable income for CGT band purposes includes employment income, self-employment profits, pension income, rental income, savings interest above the personal savings allowance, and dividend income above the £500 dividend allowance. The personal allowance (£12,570) is deducted first. Capital gains themselves are not counted as income - they are added on top after income has filled the bands.

Does making a large capital gain push my income into a higher tax bracket?

No. Capital gains are not income, so they do not change your income tax rate, and they do not count towards the "adjusted net income" that tapers the personal allowance between £100,000 and £125,140. The only way a gain interacts with income is that your income is measured first to decide how much of the gain gets 18% versus 24% - not the other way round.

I sold shares and a rental property in the same year - do I get two £3,000 allowances?

No. The £3,000 annual exempt amount is a single yearly figure across all your gains combined, not per asset. You net all gains and losses for the year, then take one £3,000 off the total. Where a couple each own a share of an asset, though, each person has their own £3,000 - so a jointly owned disposal can shelter £6,000 between two spouses.

This page is for general information only and is not financial, tax or legal advice. Your individual circumstances will affect your CGT position. 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.