Guide

Capital Gains Tax on US and Foreign Shares for UK Residents, 2026/27

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

Quick answer

If you are UK resident, gains on US and other foreign shares held outside an ISA are taxed in the UK at 18% or 24% in 2026/27 after the £3,000 allowance.¹ Work the gain out in pounds: convert each purchase at the exchange rate on its date and the sale at the rate on the sale date,² and pool shares of the same company at their sterling cost, as for UK shares.³ If the other country taxed the gain, claim foreign tax credit relief so you do not pay twice.⁴

Key facts (2026/27)

UK residents pay UK tax on foreign income and gains; the place of listing does not matter.¹
Each amount is converted into sterling "at the date of the acquisition" or disposal; HMRC expects a reasonable rate used consistently.²
Same-day, 30-day and Section 104 matching apply to foreign shares in the same way.³
Foreign tax credit relief is capped at the UK tax on the same gain.⁴
A credit balance in a foreign-currency bank account is outside CGT for individuals since 6 April 2012.⁶
Report by 31 January 2028 for a 2026/27 sale. Figures checked 19 October 2026, before the Autumn Budget on 28 October 2026.

Do UK residents pay CGT on US shares?

Yes. UK residents are taxed on worldwide gains,¹ so a gain on shares in a US, European or any other company is chargeable in the same way as a gain on a FTSE company: allowable costs, the £3,000 annual exempt amount, then 18% within your unused basic-rate band and 24% above it. Shares held inside a stocks and shares ISA are the exception: there is no CGT on them at all (see CGT and ISAs).

Shares you received from an overseas employer's share plan follow the employee share rules for their cost and timing; GOV.UK's employee share schemes guidance covers those.⁷

How do you convert the gain into pounds?

HMRC's Capital Gains Manual says the consideration is "the sterling worth, at the date of the acquisition" (and likewise at disposal), following the Bentley v Pike and Capcount cases.² In practice:

convert each purchase, and its dealing fee, at the rate on the purchase date;
convert the sale proceeds, and the fee, at the rate on the sale date;
do not work out the gain in dollars and convert it at the end.

Your broker's statements usually show the rate applied to each trade; HMRC does not insist on a single source but expects one used consistently.² Because cost and proceeds are converted on different dates, currency moves can create a sterling gain on shares that lost money in dollars, or the reverse.

Worked example: a US share sold in 2026/27

Tom, a UK resident higher-rate taxpayer, bought 200 shares in a US-listed company in 2021 at $90 each when $1 was worth £0.73, then 100 more in 2023 at $150 when $1 was worth £0.80. In October 2026 he sells 150 shares at $210 when $1 is worth £0.75. He has no other gains this year; fees are ignored to keep the figures clear.

Tom's sterling gain and CGT, 2026/27

Purchase 1: 200 × $90 = $18,000 × 0.73	£13,140
Purchase 2: 100 × $150 = $15,000 × 0.80	£12,000
Section 104 pool: 300 shares	£25,140
Proceeds: 150 × $210 = $31,500 × 0.75	£23,625
Less cost of 150 shares from the pool (150/300 × £25,140)	−£12,570
Gain in pounds	£11,055
Less annual exempt amount	−£3,000
CGT at 24% on £8,055, due 31 January 2028	£1,933.20

In dollars Tom's gain is $15,000 ($31,500 less half of the $33,000 pool), worth £11,250 at the sale-date rate; converting each trade on its own date gives the £11,055 that HMRC taxes. The 150 shares left in his pool carry a sterling cost of £12,570.

Want the share matching rules and a fill-in Section 104 pool worksheet before you report? get the CGT Survival Pack, £4.99 →

Is the gain taxed in the other country too?

Often not: many countries do not tax a non-resident's gain on listed shares, but the rules are the other country's and you should check them. Where foreign tax was charged on the gain itself, you can claim foreign tax credit relief on the foreign pages of your Self Assessment return.⁴ The credit is the lower of the foreign tax and the UK tax on the same gain, so overall you pay the higher of the two, not both.

Tax withheld from foreign dividends is an income tax matter, not CGT, and is claimed separately on the foreign income pages.

What about the dollars left after the sale?

From 6 April 2012, a credit balance in a foreign-currency bank account held by an individual does not give rise to a chargeable gain or allowable loss.⁶ Check how your broker holds uninvested cash if it is not in a bank account in your name, and remember that converting the dollars back to pounds is separate from the share gain, which is already fixed in sterling at the sale date.

How do you report gains on foreign shares?

Work out the sterling gain for each sale, using the matching rules, and keep the computation with the rates used.³
Report on the Self Assessment capital gains pages, or through HMRC's real-time CGT service if you are UK resident.⁵ Claim foreign tax credit relief through Self Assessment.
Pay by 31 January 2028 for a sale in 2026/27. If you are not registered for Self Assessment, register by 5 October 2027.

You also have to complete the capital gains pages, even with no tax due, if you file a return and your disposals that year were worth more than £50,000. More on the two routes: how to report CGT. For pooling with several purchases, see the Section 104 share pool, and if you buy back within 30 days, the 30-day rule.

Enter your sterling figures

Once each trade is converted to pounds, the shares calculator gives your 2026/27 CGT at 18% and 24%.

Open the shares CGT calculator

Frequently asked questions

Do UK residents pay CGT on US shares?

Yes. UK residents are taxed on gains wherever the shares are listed, at 18% or 24% in 2026/27 after the £3,000 allowance. The shares are held outside an ISA or pension; inside an ISA there is no CGT.

Which exchange rate do I use for foreign shares?

Convert each amount into pounds at the rate on the date it happened: each purchase at the rate on the purchase date and the sale at the rate on the sale date. HMRC does not prescribe one source but expects a reasonable rate used consistently.

Can I make a sterling gain on shares that lost money in dollars?

Yes. Because cost and proceeds are converted on different dates, a fall in the pound can turn a dollar loss into a sterling gain, and a rise can do the reverse. The sterling figure is what is taxed.

Do I pay tax in the US as well?

The country where the company is based often does not tax a non-resident's gain on listed shares, but check. If foreign tax was charged on the gain, you can usually claim foreign tax credit relief on your Self Assessment return, capped at the UK tax on the same gain.

How do I report gains on foreign shares?

Through Self Assessment (the capital gains pages, with your computation) or, if you are UK resident and not claiming foreign tax credit relief, HMRC's real-time CGT service. For a 2026/27 sale the tax is due by 31 January 2028.

This page is general information, not tax advice. It covers UK tax only. Non-residents, people with split-year treatment or in the foreign income and gains regime, and holders of employee share awards may need professional advice.

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.