Guide

Capital Gains Tax Rates 2026/27: 18% & 24% Full Guide

Quick answer

UK Capital Gains Tax for 2026/27 is charged at 18% on gains that fall within your basic-rate band and 24% on gains above it (income + gain over £50,270).1 The same 18%/24% rates apply to all assets - residential property, shares and crypto - since the October 2024 Budget. The first £3,000 of gains each year is tax-free (annual exempt amount),2 and Business Asset Disposal Relief is 18% on up to £1m lifetime gains from 6 April 2026.4

Key takeaways
  • Two rates on all assets: 18% within your basic-rate band, 24% above it.1
  • The old 28% property higher rate is gone - property and shares both sit at 24% now.1
  • The tax-free annual exempt amount is £3,000 - down from £12,300 in 2022/23.2
  • Business Asset Disposal Relief is 18% from 6 April 2026 (up from 14%), £1m lifetime limit.4
  • A pension contribution that reopens basic-rate band moves gain from 24% to 18% - worth £60 per £1,000.

Last updated for the 2026/27 tax year.

Current CGT rates at a glance, 2026/27

Asset / situationCGT rate All assets, basic-rate taxpayer portion18% All assets, higher/additional-rate taxpayer portion24% Business Asset Disposal Relief (qualifying gains)18% Annual exempt amount (per individual)£3,000 Basic-rate threshold (for CGT band split)£50,270

Since October 2024, the UK uses a single CGT rate structure. The same rates apply to residential property, shares, crypto and all other assets. There is no longer a separate higher rate for property.

What changed in October 2024?

The Autumn Budget of 30 October 2024 made significant changes to CGT rates, effective from that date:

AssetBefore Oct 2024From Oct 2024 Shares (basic rate)10%18% Shares (higher rate)20%24% Property (basic rate)18%18% (unchanged) Property (higher rate)28%24% BADR rate (Oct 2024–Apr 2026)10% → 14%18%

For shares, the October 2024 Budget raised rates substantially. For residential property, the higher rate actually fell from 28% to 24%. All disposals on or after 30 October 2024 - including those in 2026/27 - use the new rates.

How the rate is determined: income and gains stacking

Your CGT rate depends on how much of the basic-rate band remains after your other taxable income. The calculation:

  1. Calculate your taxable income (gross income minus £12,570 personal allowance)
  2. Subtract from the basic-rate band limit (£37,700) to find remaining basic-rate band
  3. The first slice of your taxable gain fills this remaining band at 18%
  4. Any gain above that remaining band is taxed at 24%
Worked example — £40,000 salary, £20,000 taxable gain
Taxable income (£40,000 − £12,570)£27,430
Basic-rate band left (£37,700 − £27,430)£10,270
First £10,270 of gain at 18%£1,849
Remaining £9,730 of gain at 24%£2,335
Total CGT£4,184

If your salary is above £50,270, there is no remaining basic-rate band. Your entire taxable gain is at 24%.

The £3,000 annual exempt amount

Before applying the rates, subtract the £3,000 annual exempt amount from your net gains. Gains below £3,000 in a tax year are free from CGT. The AEA is applied after current-year losses. Brought-forward losses are only applied to the extent needed to reduce the gain to the AEA level - they don't eat into the AEA itself.

The AEA is use-it-or-lose-it. You cannot carry it forward or transfer it to a spouse. Each partner in a couple has their own £3,000 (£6,000 combined). The AEA was £12,300 in 2022/23 and was cut to £3,000 from 2024/25 onwards.

Use the CGT allowance calculator to see how much of your AEA remains after previous disposals this year.

CGT allowance and rate history

The tax-free allowance has been cut sharply over the past few years, which is why more people now pay CGT even on modest gains. This is the annual exempt amount for individuals, year by year:

Tax yearAnnual exempt amount
2021/22£12,300
2022/23£12,300
2023/24£6,000
2024/25£3,000
2025/26£3,000
2026/27£3,000

The allowance more than halved in 2023/24 and then halved again in 2024/25, so a gain that would have been fully covered in 2022/23 can now leave most of the profit taxable. Business Asset Disposal Relief, which applies to qualifying business sales, has also risen in steps rather than all at once:

Disposal dateBADR rate
Up to 5 April 202510%
6 April 2025 to 5 April 202614%
From 6 April 202618%

Figures reflect HMRC rates for individuals. The lifetime limit for BADR remains £1 million of qualifying gains. See our sources for the official GOV.UK references.

Business Asset Disposal Relief, 18% rate

BADR gives a reduced 18% rate on qualifying gains up to a £1 million lifetime limit. It applies to shares in personal trading companies where you hold at least 5%, have been an officer or employee for 2+ years, and the company is a trading company. The rate rose from 10% to 14% from 6 April 2025, then rose again to 18% from 6 April 2026.

The disposal date determines which BADR rate applies: 10% up to 5 April 2025, 14% from 6 April 2025 to 5 April 2026, 18% from 6 April 2026. You must claim BADR on your Self Assessment return.

Need to report or organise records for a CGT disposal? The CGT Survival Pack - £4.99 covers the figures you need to track and the 60-day reporting rules.

Get the pack →

The 60-day reporting rule for residential property

Sell a UK residential property with CGT owed and you must report and pay within 60 days of completion. Use HMRC's online property reporting service. Late reporting triggers automatic penalties starting at £100. Non-property gains are reported through Self Assessment by 31 January.

Calculate your CGT at 2026/27 rates

Enter your gain, costs, losses and income for an instant CGT breakdown at 18% and 24%.

Open the CGT calculator

Frequently asked questions

What are the CGT rates for 2026/27?

18% for gains within the basic-rate band (income + gain within £50,270) and 24% for gains above it. These rates apply to all assets, property, shares, crypto. Business Asset Disposal Relief is 18% on qualifying gains up to £1m lifetime (from 6 April 2026).

What is the CGT rate on residential property in 2026/27?

18% (basic rate) or 24% (higher rate). The previous higher rate for property was 28%, reduced to 24% from October 2024. There is no longer a separate rate for property versus shares.

What is the CGT annual exempt amount for 2026/27?

£3,000 per individual. Net gains below this in a tax year are completely free from CGT. The AEA was cut from £12,300 to £3,000 in April 2024.

Do pension contributions affect CGT rates?

Yes, indirectly. Pension contributions reduce your taxable income, which can create more basic-rate band headroom for your gain to be taxed at 18% rather than 24%. Each £1,000 of income brought below the higher-rate threshold shifts £1,000 of gain from 24% to 18%, saving £60.

Is crypto taxed at a different CGT rate?

No. Cryptoassets are taxed at the same 18% and 24% CGT rates as shares. HMRC treats most crypto held as an investment as chargeable to CGT, with the same £3,000 annual exempt amount and the same pooling rules as shares. Swapping one token for another counts as a disposal, so a gain can arise even if you never cash out to sterling. Mining, staking and airdrop rewards can be income rather than capital, which is a separate calculation.

This page is for general information only. Rates and rules change, always verify with HMRC or a qualified tax adviser for your specific situation.

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.

  1. Capital Gains Tax: rates www.gov.uk/capital-gains-tax/rates
  2. Capital Gains Tax: allowances (annual exempt amount) www.gov.uk/capital-gains-tax/allowances
  3. Capital Gains Tax rates and allowances (HMRC) www.gov.uk/government/publications/rates-and-allowances-capital-gains-tax
  4. Business Asset Disposal Relief www.gov.uk/business-asset-disposal-relief
Verified against published HMRC and GOV.UK guidance.

Written and reviewed by James Whitfield and the UKCapitalGainsTaxCalculator editorial team.

Every figure is checked against current HMRC and GOV.UK guidance and reviewed for the 2026/27 tax year. We explain how the tax works in plain English with worked examples, not just numbers. Editorial standards · Sources · About us