Rates and allowance
The annual exempt amount is £3,000. Gains above that are taxed at 18% if they fall within your unused basic rate band and 24% above it. Residential property and other assets now use the same rates.
Example
Lucy earns £40,000 and sells shares for a £20,000 gain. After the £3,000 allowance, £17,000 is taxable. She has £10,270 of basic rate band left, so that portion costs £1,848.60 and the remaining £6,730 costs £1,615.20: £3,463.80 in total.
Reducing CGT legally
- Use ISAs and pensions, where gains are tax-free
- Transfer assets to a spouse to use both allowances
- Offset losses against gains
- Spread disposals across tax years
A disposal is not just its sale price
Keep acquisition costs, sale costs and other relevant transactions with the record of a disposal. An isolated example may not capture the effect of multiple gains, losses or matching rules.
Try it with your own numbers
Estimate Capital Gains Tax for 2026/27 at 18% and 24%, after the £3,000 annual exempt amount and your taxable income.
Frequently asked questions
Do I pay CGT on gifts?
Gifts to anyone other than a spouse or charity can trigger CGT based on market value.
Check it on GOV.UK: Capital Gains Tax rates (opens GOV.UK in a new tab)
Sources
Tax year 2026/27. Check these official sources for current rules and deadlines.
Related calculators
- Capital Gains Tax Calculator — Estimate Capital Gains Tax for 2026/27 at 18% and 24%, after the £3,000 annual exempt amount and your taxable income.
Related guides
- Dividend Tax Explained — How dividends are taxed in 2026/27 after the rates rose to 10.
- Inheritance Tax Explained — How UK Inheritance Tax works: the nil-rate bands, spouse exemption, gifts and the seven-year rule, and upcoming changes.
- Self Assessment Explained — Who needs to file a Self Assessment tax return, what goes on it, the deadlines for 2026/27 and the penalties for missing them.