Guide

Capital Gains Tax on Gifts 2026/27

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

Give an asset away and, as far as CGT is concerned, you have sold it - at its market value on the day you handed it over.¹ That can leave you with a tax bill on money you never received. The big exceptions are a spouse or civil partner (tax-neutral) and charity (exempt); everyone else, including your own children, counts as a disposal at market value.

Key takeaways

Gifting is a disposal at market value - CGT is due on the gain even though no money changes hands.¹
Gifts between spouses or civil partners are no-gain/no-loss - no CGT now, and the recipient inherits your original cost.¹
Gifts to a UK charity are exempt - giving appreciated shares beats selling and donating the cash.
The first £3,000 of gains each year is still tax-free; the rest is taxed at 18%/24%.³
Gift Hold-Over Relief can defer the tax on business assets, but not on listed shares or buy-to-lets gifted to an individual.²

Gifting an asset is a CGT disposal

Gift an asset - property, shares, crypto or anything else chargeable - and HMRC treats it as a disposal at open market value on the date it was given. Any gain between your original acquisition cost and that market value is a chargeable gain.

Receiving nothing for the gift makes no difference. CGT is based on the market value at disposal, not what you actually received.

Gifts to a spouse or civil partner - no gain/no loss

Transfers between spouses or civil partners living together are treated as no gain/no loss. No CGT arises on the gift itself. The recipient is treated as having acquired the asset at the donor's original cost and acquisition date.

CGT is deferred, not cancelled (more in our guide to CGT between spouses). It crystallises when the recipient eventually sells. The rule only applies to spouses and civil partners who are not separated. Transfers to cohabiting partners who are not married or in a civil partnership are treated at market value.

Gifts to charity

Gifts to qualifying UK charities are exempt from CGT. No gain arises regardless of how much the asset has appreciated. And the charity pays no CGT when it eventually sells (charities are exempt from CGT in their own right). Gifting appreciated assets to charity is significantly more tax-efficient than selling and donating the cash.

Gifts to children and other family members

Gifts to adult children, relatives or friends are treated at market value on the date of the gift. You pay CGT on any gain above the £3,000 AEA. The recipient's base cost is set at the market value used in your CGT calculation - not your original cost.

Being a family member does not trigger any CGT relief. Gifts to minor children of non-cash assets can also attract anti-avoidance rules in certain circumstances.

Gift Hold-Over Relief

Gift Hold-Over Relief defers the CGT on a gift until the recipient eventually sells. Both donor and recipient must jointly elect for the relief. It is available for:

Business assets - assets used in a trade, shares in unlisted trading companies, agricultural property
Assets that attract an immediate inheritance tax charge (such as transfers into most trusts)

When hold-over relief is claimed, the recipient takes the donor's original base cost. The gain is deferred, not cancelled. The recipient will pay CGT on a larger gain when they eventually sell.

Hold-Over Relief is not available for most gifts of investment property or listed shares to individuals.

Worked example

David gifts 10,000 shares in a listed company to his adult son Tom. He bought the shares for £5,000. They are worth £25,000 on the date of the gift. David's taxable income is £45,000, leaving £5,270 of basic-rate band.

Worked example — gifting listed shares to an adult child

Market value on gift date	£25,000
Less original cost	−£5,000
Gross gain	£20,000
Less annual exempt amount	−£3,000
Taxable gain	£17,000
First £5,270 at 18% (basic-rate band left)	£948.60
Remaining £11,730 at 24%	£2,815.20
CGT David pays	£3,763.80

David has £5,270 of basic-rate band left (£50,270 − £45,000), so a slice of the gain gets 18% and the rest 24%.

Tom's base cost for future disposals is £25,000 - the market value used in David's calculation. Hold-Over Relief is not available for listed shares gifted to an individual.

Estimate the CGT on a gift

Use the current market value as your sale proceeds and your original cost as the purchase price to estimate CGT on a gift using 2026/27 rates.

Open the CGT calculator

Frequently asked questions

Do I pay CGT when I give property to my child?

Yes. Gifting property to your child (or any person other than your spouse or civil partner) is treated as a disposal at market value. If the property has increased in value since you acquired it, you have a chargeable gain - even though you receive no money. CGT is calculated on the difference between the market value on the date of the gift and your original acquisition cost, less any allowable costs and the £3,000 annual exempt amount.

Does my spouse's gift trigger CGT?

No. Transfers between spouses and civil partners who are living together are treated as no gain/no loss. No CGT arises on the gift. The recipient spouse takes the donor's original base cost. CGT will eventually be due when the recipient spouse disposes of the asset to a third party.

What is hold-over relief and when can I use it?

Gift Hold-Over Relief defers CGT that would otherwise arise on a gift. It is available for business assets (assets used in a qualifying trade, shares in unlisted trading companies, agricultural property) and for gifts that attract an immediate inheritance tax charge. Both the donor and recipient must jointly elect for the relief using HMRC's HS295 form. The CGT is not cancelled - it is deferred until the recipient sells the asset, at which point it becomes taxable in the recipient's hands.

Is there a CGT annual exempt amount on gifts?

Yes. The £3,000 annual exempt amount applies to gifts in the same way as any other disposal. If the gain on all your disposals (including gifts) in the tax year is below £3,000, no CGT is due. The exempt amount is per individual per year - if you make multiple gifts in the same year, all the gains are pooled against one £3,000 allowance.

Does gifting cash trigger CGT?

No. Cash (sterling) is not a chargeable asset for CGT, so giving money away never creates a capital gain. The tax to watch with cash gifts is inheritance tax: a gift can fall back into your estate for IHT if you die within seven years. CGT only bites when you give away something that can rise in value - property, shares, funds, crypto, or valuable possessions worth more than £6,000 (see CGT on personal possessions).

Do I have to report a gift to HMRC?

If the gift produces a taxable gain, yes - you report it on your Self Assessment return for that tax year and pay by 31 January following. If the gift is UK residential property with CGT due, you have the tighter 60-day online reporting deadline instead. You base the calculation on the market value at the date of the gift, so keep a dated valuation (an estate agent's appraisal or a share price record) as evidence.

This page is for general information only and is not financial, tax or legal advice. CGT rules on gifts can be complex, particularly where business assets, trusts or inheritance tax interact. Consult a qualified tax adviser before making significant gifts.

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.