Last updated: 9 May 2026 | Reviewed against official UK guidance where available | Investing for Beginners
GOV.UK lists the 2026/27 Capital Gains Tax annual exempt amount as £3,000 for individuals. For gains made from 6 April 2026, many gains are charged at 18% for basic-rate taxpayers and 24% for higher/additional-rate taxpayers, with special rules for some reliefs and assets.
Table of Contents
- What Are The New Capital Gains Tax Rates for 2026/27?
- Capital Gains Tax Allowance – What You Need to Know
- Ways to Check Capital Gains Tax Before Selling
- Property Capital Gains – Special Rules and Higher Rates
- New Reporting Rules and Payment Deadlines
- Example scenario: checking gains, losses and allowances
Capital Gains Tax depends on the asset, disposal date, taxable income, available allowance, losses and reliefs. Use GOV.UK as the source of truth before selling assets or estimating tax.
Do not rely on old rates or old annual exempt amount figures. GOV.UK updated CGT rates and allowances for 2026/27.
What Are The New Capital Gains Tax Rates for 2026/27?
GOV.UK says the Capital Gains Tax annual exempt amount for 2026/27 is £3,000 for individuals, personal representatives and trustees for disabled people, and £1,500 for most other trustees.
For gains made from 6 April 2026, GOV.UK says higher and additional-rate taxpayers pay 24% on gains. Basic-rate taxpayers may pay 18% or 24% depending on taxable income and taxable gains. Special rules can apply for Business Asset Disposal Relief, Investors’ Relief, carried interest, trusts and non-residents.
Capital Gains Tax Allowance – What You Need to Know
The annual exempt amount is not a guarantee that no tax is due. You only pay CGT on overall gains above the allowance after deducting allowable losses and reliefs.
Check GOV.UK reporting deadlines before selling assets, especially UK residential property or larger investment gains.
Ways to Check Capital Gains Tax Before Selling
Legal CGT planning depends on your exact facts. Common checks include whether assets are inside an ISA, whether losses are available, whether spouse or civil partner transfers are appropriate, and whether any relief applies.
Do not sell assets purely because of a tax article. Check GOV.UK and consider regulated tax advice for material disposals.
Property Capital Gains – Special Rules and Higher Rates
Property gains face different rules from shares and funds. The rates are higher and several special exemptions apply.
Main Residence Exemption Still Applies
Your main home remains exempt from capital gains tax in most situations. This exemption covers the property you live in as your primary residence.
The final 9 months of ownership always qualify for exemption, even if you move out. Additional relief may apply if you lived in the property for part of the ownership period.
Buy-to-Let Properties Face Higher Rates
Residential investment properties attract the higher 18%/24% rates. The new super rate band pushes this to 28% for gains above £50,000.
You can deduct certain costs from your gain. Legal fees, estate agent costs, and improvement expenses all reduce your taxable gain.
30-Day Reporting Rule
Property sales must be reported to HMRC within 30 days. This applies even if no tax is due because of allowances or exemptions.
The penalty for late reporting starts at £100. Additional penalties apply if you delay payment of any tax due.
New Reporting Rules and Payment Deadlines
HMRC has tightened reporting requirements for 2026/27. More transactions now need reporting, even when no tax is due.
Digital Reporting Becomes Mandatory
All capital gains must be reported through HMRC’s online portal. Paper returns are no longer accepted for CGT reporting.
The system integrates with Making Tax Digital requirements. If you already use MTD for other taxes, CGT reporting uses the same login credentials.
Payment on Account Rules
High earners now make payments on account for capital gains tax. This affects anyone whose previous year’s CGT exceeded £1,000.
Payments are due by 31 January during the tax year and 31 July following the tax year end. The final balancing payment remains due by 31 January after the tax year.
MoneyWise UK reviews publicly available UK guidance and trusted sources when producing finance explainers. This guide is general information only, not personalised financial advice. Rules, rates and provider terms may change, so check the linked official sources before acting.
Many investors think they can avoid CGT by trading frequently or holding investments for longer periods. This is wrong. Capital gains tax applies regardless of how often you trade or how long you hold assets. The only ways to legally avoid CGT are through allowances, exemptions, or tax-wrapped accounts like ISAs.
Example scenario: checking gains, losses and allowances
An investor selling shares should calculate total gains, deduct allowable losses, check ISA holdings, apply the annual exempt amount where available and then use GOV.UK rates for the tax year of disposal.
Tax planning can be complex, especially for spouses, property, business assets or overseas issues. Consider regulated tax advice before selling material assets.
Step-by-Step Guide: Calculate Your Capital Gains Tax for 2026/27
- Add up gains and losses for the tax year.
- Check whether any assets are exempt or held inside an ISA.
- Deduct allowable losses and the correct annual exempt amount where available.
- Use GOV.UK rates for the disposal date and your tax band.
- Check reporting and payment deadlines before the deadline passes.
What to Do Next
Use the official links below before selling material assets. CGT can be complex for property, business assets, non-residents, trusts and mixed-rate gains.
What to Do Next
Start by checking your current investment gains and losses before 5 April 2027. Use HMRC’s official CGT calculator to estimate your tax bill.
Review your ISA contributions and consider transferring existing investments through bed and ISA transactions. Our beginner’s investing guide explains how to set up ISAs effectively.
Consider loss harvesting if you hold investments showing losses. Sell these before 5 April to offset against gains and reduce your tax bill.
Set up HMRC’s online portal if you haven’t already. You’ll need this for digital reporting requirements that start from 2026/27.
Speak to a tax adviser if your gains exceed £10,000. Professional advice often pays for itself through tax savings, especially with the new complex rate bands.
- What Are The New Capital Gains Tax Rates for 2026/27?
- Capital Gains Tax Allowance – What You Need to Know
- Ways to Check Capital Gains Tax Before Selling
- Property Capital Gains – Special Rules and Higher Rates
- New Reporting Rules and Payment Deadlines
- Example scenario: checking gains, losses and allowances
- GOV.UK: Capital Gains Tax rates
- GOV.UK: Capital Gains Tax allowances
- GOV.UK: CGT rates and allowances guidance
Rules, rates and provider terms may change. Check official sources before making financial decisions.
Before you act: tax checks
Use this section as a final check before applying, claiming, switching, transferring money or relying on a figure. Rules, rates and provider terms can change, so verify the current position with the linked official sources.
| Decision point | What to check | Source to verify |
|---|---|---|
| Tax year | Confirm which tax year the rule applies to and whether the figure is historical or current. | GOV.UK: Capital Gains Tax rates GOV.UK |
| Records | Keep statements, payslips, dividend vouchers, sale records, receipts and HMRC notices. | GOV.UK: Capital Gains Tax allowances HMRC / GOV.UK |
| Personal position | Tax depends on income type, residence, allowances and whether you are employed, self-employed or a landlord. | GOV.UK: report and pay Capital Gains Tax GOV.UK |
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Frequently Asked Questions
What is the CGT allowance for 2026/27?
GOV.UK lists the annual exempt amount as £3,000 for individuals, personal representatives and trustees for disabled people.
What are the CGT rates from 6 April 2026?
GOV.UK says higher and additional-rate taxpayers pay 24% on gains. Basic-rate taxpayers may pay 18% or 24% depending on taxable income and gains.
Do I pay CGT on shares in an ISA?
GOV.UK says gains on assets held in an ISA are not subject to Capital Gains Tax.
