What is the UK Capital Gains Tax rate and tax-free allowance for 2026-27?

Checked on 2026-10-25

For gains from 6 April 2026, the first £3,000 of total gains in the tax year is tax-free. Above that, gains that fit in your unused basic rate Income Tax band are taxed at 18% and the rest at 24%; higher and additional rate taxpayers pay 24%. UK residents pay on UK and foreign gains.

Key facts

What	The guidance says	Source
Tax-free allowance (annual exempt amount) 2026-27	£3,000 for individuals (£1,500 for most trusts)	GOV.UK, Capital Gains Tax allowances; HMRC, rates and allowances table
Rate for higher and additional rate taxpayers	24% on gains from 6 April 2026	GOV.UK, Capital Gains Tax rates
Rate for basic rate taxpayers	18% on the part of gains (after the allowance) that, added to taxable income, falls within the basic rate band; 24% on the rest	GOV.UK, Capital Gains Tax rates
Basic rate band used in GOV.UK’s 2026-27 example	£37,700	GOV.UK, Capital Gains Tax rates, examples
Business Asset Disposal Relief	18% from 6 April 2026	GOV.UK, Capital Gains Tax rates
UK residential property sold	Report and pay within 60 days of completion (completions on or after 27 October 2021)	GOV.UK, Reporting and paying Capital Gains Tax
Other gains	Report in the Self Assessment return for the tax year after the sale	GOV.UK, Reporting and paying Capital Gains Tax

Working out your rate

GOV.UK sets out the steps for a basic rate taxpayer:

Work out your taxable income: income minus your Personal Allowance and other Income Tax reliefs.
Work out your total taxable gains and deduct the £3,000 allowance.
Add the remaining gains to your taxable income.
The part within the basic Income Tax band is taxed at 18%; any part above it at 24%.

If you have gains taxed at both rates, GOV.UK says you can use the allowance against the gains taxed at the higher rate first.

What it applies to

GOV.UK lists most personal possessions worth £6,000 or more (apart from your car), property that isn’t your main home, your main home in some cases (if let out, used for business or very large), shares not held in an ISA or PEP, business assets and cryptoassets. It does not apply to gains from ISAs or PEPs, UK government gilts and Premium Bonds, or betting, lottery or pools winnings.

For people moving to the UK

GOV.UK says your residence for capital gains is worked out the same way as for income, and UK residents pay tax on both UK and foreign gains. HMRC’s guidance says you do not get the annual exempt amount in a year in which you claim the 4-year foreign income and gains regime or Overseas Workday Relief.

Allowance in earlier years: £3,000 in 2025-26 and 2024-25, £6,000 in 2023-24, £12,300 in 2022-23 and 2021-22 (HMRC, annual exempt amount table).
Non-residents still pay Capital Gains Tax on UK property or land, and must report all sales of UK property or land even with no tax to pay (GOV.UK, Capital Gains Tax).

Sources

GOV.UK: Capital Gains Tax (sections: what you pay it on, allowances, reporting and paying, rates) checked 2026-10-25
HMRC: Capital Gains Tax rates and allowances (annual exempt amount table) checked 2026-10-25
GOV.UK: Tax on foreign income, UK residence and tax (Residence and capital gains) checked 2026-10-25

Change history

2026-10-25: Page created

This is general information, not legal advice, and Lumen is not a law firm. Rules change and offices differ: check the official sources above before you act. Found something wrong or out of date? Write to support@lumen.observer.