Tax2 min read · Updated 21 October 2026
Capital gains tax in the UK for 2026/27: rates, allowance and an example
How UK capital gains tax works in 2026/27: the £3,000 allowance, the 18% and 24% rates, how your income decides which applies, with worked examples in pounds.
What is taxed
Capital gains tax is on the profit when you sell or give away something that has gone up in value: shares outside an ISA or pension, a second property, crypto, valuable art. The gain is the sale price minus what you paid, less allowed costs.
Allowance and rates
| Annual exempt amount | £3,000 |
| Rate inside basic-rate band | 18% |
| Rate above it | 24% |
| Business Asset Disposal Relief | 18% |
Two examples
Salary £30,000, gain £23,000. Take off £3,000, leaving £20,000. It fits inside the basic-rate band, so tax is 18%: £3,600.
Salary £80,000, gain £53,000. After the £3,000 allowance, £50,000 is taxable and all of it is above the band, so tax is 24%: £12,000. If it qualified for Business Asset Disposal Relief, it would be £9,000.
Using losses
Losses from other disposals in the same year come off the gain first. You must report losses to HMRC to carry them forward.
Common questions
What is the CGT allowance for 2026/27?
£3,000 for most individuals.
What are the CGT rates?
18% and 24%, depending on your total taxable income.
Do I pay CGT on my home?
Normally not on your main home. A second property is different.