Capital Gains Tax has moved more times in recent Budgets than almost any other UK tax. The allowance has been cut, property rates have changed, and the annual exempt amount is now just £3,000. That is a fraction of the £12,300 it was in 2022.
Here is the 2026/27 picture, written for people who want to work out what they might owe without trawling through a tax manual.
The 2026/27 rates
CGT uses two rates, which apply after your annual exempt amount of £3,000.
- Shares, crypto, and most other assets: 18 per cent for gains within the basic rate band, 24 per cent above it.
- Residential property (not your main home): 18 per cent basic rate, 24 per cent higher rate.
- Business Asset Disposal Relief: 14 per cent on qualifying gains up to a lifetime limit of £1 million (rising to 18 per cent from April 2026).
What you pay on what
Shares and funds outside an ISA
Sell £20,000 of shares that cost £12,000. Gain = £8,000. Subtract the £3,000 allowance. Taxable gain £5,000. If you are a higher-rate taxpayer, that is £1,200 of CGT.
Second home or buy-to-let
Sell a buy-to-let for £260,000 bought for £200,000. After £8,000 of selling and legal costs, gain = £52,000. Subtract allowance £3,000. Taxable gain £49,000. Higher-rate tax at 24 per cent = £11,760. You must report and pay this within 60 days of completion.
Cryptocurrency
Crypto is treated like other assets. Each disposal is a taxable event, including swapping one coin for another. Our capital gains tax calculator can help with single disposals; for complex history, dedicated crypto tax software is usually faster.
Ways to reduce the bill
- Use both spouses' allowances: transferring assets between spouses is tax-free and doubles the £3,000 annual exemption to £6,000.
- Bed and ISA: sell shares outside an ISA and buy them inside one, using the annual allowance each year.
- Use losses: losses on other investments can be offset against gains. Unused losses carry forward indefinitely.
- Time the disposal: spreading a large disposal across two tax years uses two annual allowances.
Reporting rules
For shares and most assets, report CGT through your Self Assessment return after the tax year ends. For UK residential property, report and pay within 60 days of completion through the HMRC online service. Missing this deadline is one of the most common causes of CGT penalties.
Your main home
Private Residence Relief usually means no CGT on selling your main home. It only becomes an issue if you have let it out, used part of it for business, or owned it for a period while it was not your main home.
The bottom line
With the allowance now so low, CGT catches many first-time investors, buy-to-let landlords selling a property, and long-term employee share scheme holders. If you are planning to sell something that has grown in value, model the tax before you commit.