The UK CGT allowance is £3,000 for the 2026/27 tax year. That means you can make up to £3,000 of capital gains in total before you owe any Capital Gains Tax. The Autumn Budget on 28 October 2026 confirmed that the allowance stays at £3,000 for 2027/28, and the main CGT rates stay at 18% and 24%.
The allowance was £12,300 as recently as 2022/23, so far more people now pay CGT. Selling a second property, shares outside an ISA or a business asset can easily push you over the limit. However, good planning can still reduce your bill.
In this guide, you will learn how the allowance works, what the rates are and how to calculate your tax. You will also see what changed in Budget 2026 and how to use your allowance before you lose it.
What is the UK CGT allowance?
The UK CGT allowance is the amount of gains you can make each tax year without paying tax. HMRC calls it the Annual Exempt Amount. It applies to your total net gains for the year, not to each asset separately. You can read the official wording on the GOV.UK Capital Gains Tax allowances page.
A tax year runs from 6 April to 5 April, so 2026/27 covers 6 April 2026 to 5 April 2027. If your gains stay at or below £3,000, you pay no Capital Gains Tax. If they go above £3,000, you pay tax only on the part above the allowance.
The allowance works on a use-it-or-lose-it basis. You cannot carry an unused amount forward, and you cannot transfer it to someone else. However, married couples and civil partners each have their own allowance, so a couple can shelter £6,000 between them. Companies cannot claim the allowance at all.
Most trusts receive half the individual amount, which is £1,500. We cover trusts and executors later in this guide.
UK CGT allowance by tax year
The allowance has fallen sharply in recent years. The table below shows the position for individuals.
| Tax year | CGT allowance (individuals) | Change |
|---|---|---|
| 2022/23 | £12,300 | Starting point |
| 2023/24 | £6,000 | Cut by £6,300 |
| 2024/25 | £3,000 | Cut by £3,000 |
| 2025/26 | £3,000 | No change |
| 2026/27 | £3,000 | No change |
| 2027/28 | £3,000 | No change (confirmed at Budget 2026) |
As a result, a £10,000 gain that the allowance fully covered in 2022/23 now leaves £7,000 taxable. You can check earlier years on the GOV.UK page for previous tax-free allowances.
CGT rates: how much tax do you pay above the allowance?
Once your gains pass the allowance, the rate you pay depends on your income. The table shows the rates for 2026/27. They also apply for 2027/28.
| Who pays | CGT rate |
|---|---|
| Basic rate taxpayers (gains inside the basic rate band) | 18% |
| Higher and additional rate taxpayers | 24% |
| Trustees and personal representatives | 24% |
| Gains that qualify for Business Asset Disposal Relief | 18% |
Here is how HMRC decides your rate. First, it adds your taxable gains, after the allowance, to your taxable income. Gains that fall inside the basic rate band are taxed at 18%. The band is £37,700 for 2026/27. Any gains above it are taxed at 24%. The same rates apply to shares, UK residential property and most other assets.
Your main home usually attracts no CGT because of Private Residence Relief. For the full detail, see the GOV.UK Capital Gains Tax rates page.
How to work out your CGT bill
Follow these four steps to calculate your Capital Gains Tax.
- Work out each gain. Take the sale price, or the market value for a gift, and subtract what you paid. Then deduct allowable costs such as legal fees, estate agent fees and the cost of improvements. Routine repairs do not count.
- Deduct allowable losses. Losses from the same tax year must be set against your gains first. Qualifying losses from earlier years are used only as far as needed to bring your gains down to the allowance.
- Subtract the £3,000 allowance. What remains is your taxable gain.
- Apply the right rate. Use 18% for gains inside your basic rate band and 24% above it.
Worked examples of the UK CGT allowance
The examples below show how the allowance and the two rates work together. They assume no losses, no extra costs and no other reliefs.
| Example | Gain | Taxable after the £3,000 allowance | CGT due |
|---|---|---|---|
| Basic rate taxpayer sells shares | £10,000 | £7,000 | £1,260 (18%) |
| Higher rate taxpayer sells the same shares | £10,000 | £7,000 | £1,680 (24%) |
| Higher rate taxpayer sells a second property bought for £200,000 and sold for £320,000 | £120,000 | £117,000 | £28,080 (24%) |
| Taxable income of £20,000 and a large gain that crosses the basic rate band | £52,600 | £49,600 | £10,842 (18% on £17,700 and 24% on £31,900) |
The last example follows the official GOV.UK method. The basic rate band of £37,700 leaves £17,700 of room after £20,000 of income, so the rest of the gain is taxed at 24%.
Now see what a couple can gain by sharing. Imagine a higher rate couple with shares showing a £12,000 gain. If one partner sells everything, £9,000 is taxable and the bill is £2,160. If they first transfer half the shares to the other partner, each has a £6,000 gain. After two allowances, only £6,000 is taxable and the bill falls to £1,440. The couple saves £720.
Transfers between spouses and civil partners who live together normally trigger no CGT. The GOV.UK guidance on gifts to your spouse or charity explains the rules.
Which assets and disposals count for CGT?
CGT applies when you dispose of an asset. That includes selling, swapping, gifting or otherwise transferring it. Gifts to anyone other than a spouse, civil partner or charity are treated as sales at market value, even if you receive no money.
Common assets that can trigger CGT include:
- buy-to-let and second properties
- shares and funds held outside an ISA or pension
- business assets
- personal possessions worth £6,000 or more, excluding your car
- cryptoassets
Several assets sit outside CGT. Your main home is usually exempt, and so are ISAs, pensions, UK gilts and Premium Bonds. If you let property, our property ownership and development page explains how disposals are taxed. Our guidance for landlords covers the wider picture.
Joint assets, Scottish taxpayers and crypto
A few special cases come up often.
- Joint assets. If you own an asset with someone else, each owner reports only their own share of the gain. Each owner can also use their own allowance, which makes a joint sale very efficient for married couples.
- Scottish taxpayers. CGT is a UK-wide tax. Scottish taxpayers use the rest of the UK income tax bands to decide whether they pay 18% or 24%.
- Cryptoassets. Crypto is treated like other property, so selling, swapping or spending it can create a gain. The Budget also confirmed that eligible stablecoins will be treated more like money for tax purposes. Therefore, check whether your token qualifies before you sell.
What changed in the Autumn Budget 2026?
Chancellor John Healey delivered his first Budget on 28 October 2026. For CGT, the message is stability for most taxpayers and big changes for business owners. These measures are announced, so they still need to pass through the Finance Bill.
- Allowance unchanged. The UK CGT allowance stays at £3,000 for individuals in 2027/28. Most trusts keep £1,500.
- Rates unchanged. The main CGT rates stay at 18% and 24%.
- BADR limit halved. From 6 April 2027, the lifetime limit for Business Asset Disposal Relief falls from £1 million to £500,000. For a higher rate taxpayer, the maximum saving drops from £60,000 to £30,000.
- New Founders’ Relief. From 6 April 2027, a 10% rate applies to up to £10 million of lifetime gains. The conditions are strict. The founder must have held 25% of the shares from the start of trading and for at least five years, and the company must meet turnover and staffing tests. A consultation on the detail closes on 30 November 2026.
- Higher tax on property and savings income. From April 2027, the rates rise to 24%, 44% and 49%. This is not a CGT change, but it matters to landlords who also sell property.
- Distributions reform. From 6 April 2028, the government plans to tax some company distributions as income rather than capital gains.
- Easier 60-day penalties. From 28 October 2026, late-filing penalties for a missed 60-day property return stop building once you report the disposal on your Self Assessment return. Interest can still apply, so file on time.
So what should business owners do? A sale before 6 April 2027 keeps the £1 million BADR limit. A later sale might qualify for Founders’ Relief, but only if you meet the tests. Model both routes early. Our Business Asset Disposal Relief page explains the current relief, and the official GOV.UK Business Asset Disposal Relief guidance sets out the rules.
Seven ways to make the most of your UK CGT allowance
You cannot control market prices. However, you can control when and how you sell. These seven steps help you keep more of your gains.
- Use the allowance every year. Any unused amount disappears on 5 April. If you hold assets with large gains, consider selling in stages so that each year’s allowance is used.
- Share assets with your spouse or civil partner. Transfers between spouses are normally tax-neutral, so you can double the amount you shelter to £6,000.
- Use your losses. Losses in the same tax year must be set against gains. You can carry unused losses forward, but you must report them to HMRC within four years of the end of the tax year. The GOV.UK page on Capital Gains Tax losses explains how.
- Move investments into an ISA or pension. Investments inside these wrappers grow free of CGT. The £20,000 ISA limit stays in place for 2027/28. However, selling to move money across can create a gain, so use your allowance when you do it.
- Time your sales around 5 April. A disposal on 5 April uses one year’s allowance, while a disposal on 6 April uses the next. For property, the tax year is normally set by the date of the unconditional contract, not the completion date.
- Look at reliefs. Business Asset Disposal Relief, Enterprise Investment Scheme deferral and gift hold-over relief can all reduce or delay a bill. Read about Business Asset Disposal Relief and the Enterprise Investment Scheme on our site. Gifts to charity are also free of CGT.
- Manage your income. Your rate depends on your taxable income. Paying more into a pension can lower your income, so more of a gain may fall inside the 18% band.
These steps work best as part of a wider plan. Our tax planning team can build one around your assets and your goals.
When to report and pay Capital Gains Tax
The deadline depends on what you sold.
| Asset sold | Deadline | Where to report |
|---|---|---|
| UK residential property | 60 days from completion | HMRC’s Capital Gains Tax on UK property service |
| Shares, funds and other assets | 31 January 2028 for gains made in 2026/27 | Self Assessment, or HMRC’s real-time service where you are eligible |
If you complete a tax return, you must also report disposals when your total proceeds exceed £50,000. This applies even when your gain is below the allowance. You can start at the GOV.UK page to report and pay your Capital Gains Tax. For property, the GOV.UK guide to tax when you sell property shows what you can deduct.
Late reporting can bring penalties and interest. Therefore, do not wait for your tax return if you have sold a UK property.
UK CGT allowance for trusts, executors and non-residents
The rules change slightly for some taxpayers.
- Trusts. Most trustees get £1,500, and the allowance is shared if one person set up several trusts. Trustees pay 24%. Our trusts and inheritance tax service can help.
- Personal representatives. Executors can use the full £3,000 for the tax year of death and the following two tax years. They also pay 24%. See our deceased estates page.
- Non-residents. People living abroad can still owe UK CGT on UK property and land. Our overseas income and gains page covers this area.
Common mistakes to avoid
Most CGT problems come from a handful of errors. Watch out for these:
- treating the allowance as per asset instead of per person, per year
- forgetting to report a loss within four years
- missing the 60-day deadline on a UK property sale
- using the completion date instead of the contract date
- leaving a spouse’s allowance unused
- assuming that a gift is free of CGT
Frequently asked questions about the UK CGT allowance
Is the UK CGT allowance per person?
Yes. Each individual gets £3,000 in 2026/27. Married couples and civil partners each have their own, so they have £6,000 between them.
Can I carry forward an unused CGT allowance?
No. The allowance expires on 5 April. You can carry forward reported losses, but not the allowance itself.
Will the UK CGT allowance change in 2027/28?
No. Budget 2026 kept it at £3,000 for individuals and £1,500 for most trusts.
Do I pay CGT when I sell my main home?
Usually not, because of Private Residence Relief. However, part of the gain can be taxable if you let the home, used part of it for business or did not live there throughout.
How much CGT do I pay on a second property?
You pay 18% or 24% on gains above the allowance, depending on your income. You must report and pay within 60 days of completion.
What happens if I miss the 60-day deadline?
HMRC can charge penalties and interest. Report as soon as you can. From 28 October 2026, late-filing penalties stop building once you report the disposal on your Self Assessment return, but interest can still apply.
Is Business Asset Disposal Relief changing?
Yes. The lifetime limit falls from £1 million to £500,000 for disposals on or after 6 April 2027. The rate stays at 18%.
Do Scottish and Welsh taxpayers get a different CGT allowance?
No. The £3,000 allowance and the 18% and 24% rates apply across the UK. Scottish taxpayers use the rest of the UK income tax bands to work out which rate applies.
Final thoughts on the UK CGT allowance
The UK CGT allowance is small, but it is still worth using. Plan each sale, share assets with your spouse where it makes sense and keep clear records of costs and losses. Above all, watch the dates. The 60-day property deadline and the 6 April 2027 changes for business owners both reward early action.
How Tax Consultant can help
At Tax Consultant, we help individuals, landlords and business owners plan disposals and report them correctly. We can:
- calculate your gains, losses and tax
- check which reliefs apply
- plan sales across tax years
- file your reports with HMRC on time
Not sure where to start? Our guide to tax advice in the UK explains how to choose an adviser. When you are ready, contact our team or call 0330 133 7827 to book a consultation.
