Capital Gains Tax (CGT) is the tax you pay on the profit when you sell or dispose of an asset that has risen in value, such as shares, a second property or a business. For 2026/27 you have a tax-free Annual Exempt Amount of £3,000, and gains above it are taxed at 18% or 24% depending on your income. The calculator above applies your allowance and the right rate so you can see the tax on a disposal instantly.
You are taxed on the gain, not the total sale price, and you can deduct buying and selling costs and certain improvements. Your main home is normally exempt under Private Residence Relief.
How is Capital Gains Tax calculated in 2026/27?
Work out the gain (proceeds minus cost and allowable expenses), subtract your £3,000 Annual Exempt Amount, then apply the rate for the band your gain falls into once stacked on your income, as set out by HMRC.
| Gain position (2026/27) | CGT rate |
|---|---|
| Gain within your basic-rate band | 18% |
| Gain above the basic-rate band | 24% |
| Qualifying business sale (BADR) | 18% |
Residential property is taxed at the same 18% and 24% rates since October 2024. Our complete guide to Capital Gains Tax covers the detail.
What is the Capital Gains Tax allowance for 2026/27?
The Annual Exempt Amount is £3,000 per person for 2026/27, down from £6,000 in 2023/24 and £12,300 before that. Spouses and civil partners each have their own £3,000, so transferring an asset before a sale can double the allowance. Gains within the allowance are tax-free.
How much Capital Gains Tax will I pay on a £20,000 gain?
On a £20,000 gain from selling shares in 2026/27, you first deduct the £3,000 Annual Exempt Amount, leaving £17,000 taxable. A higher-rate taxpayer pays 24% on that, which is £4,080. A basic-rate taxpayer pays 18% on the part that fits within their remaining basic-rate band and 24% on the rest. See how much Capital Gains Tax you pay for more examples.
When do I have to report and pay CGT?
If you sell a UK residential property at a gain, you must report and pay the CGT within 60 days of completion using HMRC's online service. Other gains are usually reported through Self Assessment. Our guide to the 60-day CGT report explains the process, and our Capital Gains Tax service can handle it for you.
Related guides and calculators
- Capital Gains Tax: the complete guide
- How to reduce Capital Gains Tax on property
- Capital Gains Tax on shares
- Income tax calculator
Frequently asked questions
What is the Capital Gains Tax allowance for 2026/27?
The Capital Gains Tax Annual Exempt Amount for 2026/27 is £3,000 per person. Gains up to £3,000 in the tax year are tax-free. Spouses and civil partners each have their own £3,000 allowance.
What are the Capital Gains Tax rates for 2026/27?
For 2026/27, gains above the £3,000 allowance are taxed at 18% where they fall within your basic-rate Income Tax band and 24% above it. This applies to both residential property and other assets. Business Asset Disposal Relief gives a reduced 18% rate on qualifying business sales.
Do I pay Capital Gains Tax when I sell my home?
Usually not. Your main residence is normally exempt from Capital Gains Tax under Private Residence Relief. CGT typically applies to second homes, buy-to-let property, shares outside an ISA, and business assets.
How long do I have to report CGT on a property?
You must report and pay Capital Gains Tax on a UK residential property within 60 days of the sale completing, using HMRC's online service. Gains on other assets are usually reported through your Self Assessment tax return.
How can I reduce my Capital Gains Tax?
You can use both spouses' allowances by transferring assets before sale, offset capital losses against gains, spread disposals across tax years to use more than one annual allowance, and shelter investments in ISAs or pensions where possible.