Guide

Do You Pay Capital Gains Tax on a Stocks and Shares ISA? 2026/27

Written by James Whitfield · Last checked 19 October 2026 Checked against GOV.UK and the HMRC Capital Gains Manual

Quick answer

No. You pay no Capital Gains Tax on gains made on investments inside an ISA, and you do not report them to HMRC.¹ The flip side is that a loss inside an ISA cannot be used against other gains. Shares and funds held outside an ISA are taxed at 18% or 24% in 2026/27 once your gains pass the £3,000 allowance,⁷ which is why many investors sell up to that allowance each year and buy back inside the ISA (Bed and ISA), within the £20,000 yearly ISA limit.³

Key facts (2026/27)

ISA limit: £20,000 a year across all your ISAs; Lifetime ISA up to £4,000 of it.³¹
No CGT on disposals of shares you have put into an ISA.²
Shares you already own cannot be transferred in, except from an employee scheme; SAYE shares must go in within 90 days.¹⁶
The 30-day rule only matches shares bought back by the same person in the same capacity.⁴
Losses can only be claimed on chargeable assets, so ISA losses are wasted for CGT.⁵
Figures checked 19 October 2026, before the Autumn Budget on 28 October 2026. We will update this page if the Budget changes them.

Why is there no CGT inside an ISA?

An ISA is a tax wrapper. GOV.UK says you do not pay tax on income or capital gains from investments in an ISA,¹ and its list of share disposals that are free of CGT includes "shares you've put into an ISA or PEP".² So you can sell one fund and buy another inside the ISA, take money out, or close the account, and none of it is a chargeable disposal. Nothing goes on your Self Assessment capital gains pages either.

A stocks and shares ISA can hold company shares, unit trusts and investment funds, corporate and government bonds, and long-term asset funds. Cryptoasset exchange traded notes cannot go in a stocks and shares ISA unless they were held there before 6 April 2026; they now belong in an innovative finance ISA.¹ Crypto itself cannot be held in an ISA, so swaps and sales of tokens stay inside the normal CGT rules.

What happens to a loss inside an ISA?

It is lost for tax. You can only claim a capital loss on an asset whose gain would have been chargeable,⁵ and ISA investments are outside CGT. If you have one holding that is down and another that is up, it can make sense to keep the one standing at a loss outside the ISA: selling it there creates a loss you can set against other gains or carry forward, as long as you claim it within 4 years. See CGT losses for how losses are used.

How does Bed and ISA work?

Because you cannot move existing shares into an ISA,¹ the route is to sell them in your general investment account and buy them straight back inside the ISA. The sale is a normal disposal, so a gain or loss arises on it, worked out with the Section 104 average cost. The repurchase inside the ISA is what shelters future growth.

The 30-day "bed and breakfast" rule matches a sale with shares of the same class bought within the next 30 days, but only where they are acquired by the same person in the same capacity.⁴ A purchase made inside your ISA is widely treated as a different capacity, which is why ISA providers offer Bed and ISA as a standard service. Buying the same shares back in your ordinary account within 30 days is different: that purchase is matched to the sale and the cost you expected to use changes. The 30-day rule guide shows how the matching works.

Shares from an employer's Save As You Earn scheme are the exception to the no-transfer rule: you avoid CGT on them if you move them into an ISA within 90 days of taking them out of the scheme.⁶

Worked example: how much can you sell tax-free?

Priya, a higher-rate taxpayer, holds a global fund in a general investment account worth £40,000. Her Section 104 pool cost is £31,000, so the holding is 22.5% gain (£9,000 ÷ £40,000). She has no other gains in 2026/27 and £20,000 of ISA allowance left.

Priya's Bed and ISA, 2026/27

Option A: sell £13,333 (gain £13,333 × 22.5%)	£3,000 gain
Less annual exempt amount	−£3,000
CGT on option A	£0
Option B: sell £20,000, the full ISA allowance (cost £15,500)	£4,500 gain
Less annual exempt amount	−£3,000
CGT on option B: 24% × £1,500	£360

The tax-free amount is £3,000 divided by the gain share of the holding: £3,000 ÷ 22.5% = £13,333. Option B costs £360 now but moves the whole £20,000 into the ISA, where all future growth and income is tax-free. Dealing costs and any spread are ignored here; in practice they slightly reduce the gain.

If Priya were a basic-rate taxpayer with enough unused basic-rate band, the £1,500 in option B would be taxed at 18% (£270) instead. Use the shares CGT calculator with your own pool cost to find your figure.

Before you pay HMRC, check every cost, loss and relief is in your figures: get your full CGT report, £4.99 →

Do you need to report a Bed and ISA sale?

Only if the sale outside the ISA creates CGT to pay, or if you complete a Self Assessment return and your disposals of chargeable assets that year were worth more than £50,000, or you want to claim a loss. The ISA side is never reported. A gain within the £3,000 allowance with no other trigger needs no report. If you do have tax to pay, you can use HMRC's real-time service or Self Assessment: see how to report CGT. For a 2026/27 sale the tax is due by 31 January 2028.

Which investments still face CGT?

Shares, funds and investment trusts held in a general investment account or directly.
Cryptoassets: every sale, swap or spend is a disposal (see crypto records).
Shares in a US or other foreign company held outside an ISA, converted to pounds (see CGT on foreign shares).
Property other than your main home (see CGT on property).

UK government gilts, qualifying corporate bonds and shares in an employer Share Incentive Plan are free of CGT even outside an ISA.²

Check the gain on the part you sell

Enter the sale value and the matching share of your pool cost to see the CGT, if any, before you move it into your ISA.

Open the CGT calculator

Frequently asked questions

Do you pay capital gains tax on a stocks and shares ISA?

No. GOV.UK says you do not pay tax on income or capital gains from investments in an ISA, so selling or switching inside the ISA, or withdrawing the money, has no CGT and nothing to report.

Can I use a loss on ISA shares against other gains?

No. Because ISA gains are outside CGT, a loss made inside an ISA is not an allowable loss and cannot reduce gains you make on shares, property or crypto held elsewhere.

Can I transfer shares I already own into an ISA?

Not directly. Shares you already hold cannot be moved into an ISA, except shares from an employee scheme such as SAYE within 90 days. Instead you sell them and buy them back inside the ISA, known as Bed and ISA, and the sale outside the ISA is a disposal for CGT.

Does the 30-day rule stop Bed and ISA?

The 30-day rule only matches shares bought back by the same person in the same capacity. A repurchase made inside your ISA is widely treated as being in a different capacity, which is why Bed and ISA is offered by most providers. Buying back outside the ISA within 30 days is matched to the sale.

How much can I sell outside an ISA without paying CGT?

Enough to keep your net gains for the tax year at or below the £3,000 annual exempt amount. If a holding is 25% gain, you can sell about £12,000 of it tax-free in 2026/27, provided you have no other gains.

This page is general information, not financial or tax advice. ISA rules are set by HMRC and your provider's terms; check with your provider before a Bed and ISA, and take advice if you are unsure.

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.