Capital gains tax in 2026/27 is charged at 18% on gains that fall within your unused basic rate band and 24% on the rest, after an annual exempt amount of £3,000. The same two rates now apply to shares, funds, second homes and buy-to-let property. A basic rate taxpayer on £30,000 who makes a £10,000 gain pays £1,260; a higher rate taxpayer pays £1,680. The gain is what you sold for minus what you paid and the allowable costs, and it stacks on top of your income to decide which rate applies.
The rates and the exempt amount
| 2026/27 | |
|---|---|
| Annual exempt amount | £3,000 |
| Rate on gains within the unused basic rate band | 18% |
| Rate on gains above the basic rate band | 24% |
| Business Asset Disposal Relief rate | 18%, on up to £1 million of qualifying gains in a lifetime |
Until October 2024 shares and other assets were taxed at 10% and 20% while residential property carried 18% and 24%; the lower rates were raised to match, so the distinction between asset types has gone for the rates, although the reporting rules still differ. The exempt amount was cut from £6,000 to £3,000 in April 2024 and is unchanged since. Gains are added to taxable income for the year: any part of the gain that fits into the space left in the basic rate band, up to £50,270 of total income, is taxed at 18%, and the remainder at 24%.
Worked figures
| Gain | Basic rate taxpayer, income £30,000 | Higher rate taxpayer, income £60,000 |
|---|---|---|
| £3,000 | £0 | £0 |
| £10,000 | £1,260 (£7,000 at 18%) | £1,680 (£7,000 at 24%) |
| £30,000 | £5,264 (£20,270 at 18%, £6,730 at 24%) | £6,480 (£27,000 at 24%) |
| £100,000 | £22,064 (£20,270 at 18%, £76,730 at 24%) | £23,280 (£97,000 at 24%) |
For the basic rate taxpayer, £30,000 of income leaves £20,270 of the basic rate band unused, so that much of any gain is taxed at 18% and the rest at 24%. A large gain therefore pays close to 24% whatever your salary. The capital gains tax on shares calculator and the property capital gains calculator both work the stacking from your own income and gain.
Working out the gain
The taxable gain is the sale proceeds less the purchase price and the allowable costs. For property those costs include estate agent and solicitor fees on both purchase and sale, the stamp duty paid on purchase and the cost of improvements such as an extension, but not maintenance or mortgage interest. For shares the costs are dealing charges and stamp duty reserve tax, and shares of the same class in the same company are pooled at their average cost, with the same-day and 30-day matching rules applied first, so selling and buying back within 30 days does not reset the cost or bank the exempt amount.
Losses on other assets in the same year are set against gains before the exempt amount, and unused losses carry forward indefinitely once reported. Gifts between spouses and civil partners are made at no gain and no loss, which lets a couple use two exempt amounts and two basic rate bands on one disposal.
What is not taxed
Your main home is exempt under private residence relief for the period you lived in it, plus the final nine months of ownership. Gains inside a Stocks and Shares ISA or a pension are exempt entirely. Cars, gilts, Premium Bonds and most personal possessions sold for under £6,000 are outside the tax. Gains passed on at death are wiped out, with the beneficiary taking the asset at its value on death, although inheritance tax may apply instead.
Reporting and paying
UK residential property gains must be reported and the tax paid within 60 days of completion, through HMRC’s Capital Gains Tax on UK property account, separately from any Self Assessment return; missing the deadline brings penalties and interest. Gains on shares and other assets are reported on the Self Assessment return for the tax year, with the tax due by the following 31 January, or through HMRC’s real-time service for people who do not otherwise file. Reporting is required when total gains exceed the exempt amount, or when total proceeds exceed £50,000 and you are already within Self Assessment.
Common questions
What are the capital gains tax rates for 2026/27? 18% on gains within your unused basic rate band and 24% above it, for shares, funds and property alike, after the £3,000 annual exempt amount.
How much can I gain before paying capital gains tax? £3,000 in the tax year. Gains up to that figure are free of tax; the exempt amount cannot be carried forward if unused.
Is capital gains tax higher on a second property? Not any more. Residential property was taxed at 18% and 24% before other assets were brought up to the same rates in October 2024. Property still has the separate 60-day reporting deadline.
Do I pay capital gains tax on my own home? Not for the period it was your main residence, plus the last nine months of ownership. Periods of letting it out can create a taxable portion.
How does my income affect the rate? The gain is stacked on your income. Whatever fits in the basic rate band below £50,270 is taxed at 18%; the rest at 24%. A higher rate taxpayer pays 24% on all of it.
When do I have to pay? Within 60 days of completion for UK residential property. For other assets, through Self Assessment by 31 January after the tax year.
Information, not financial advice. Rates and the exempt amount are the published 2026/27 figures on gov.uk: capital gains tax; worked examples are estimates from the site’s calculators for straightforward cases. Reliefs and losses depend on individual circumstances, so take advice before acting on them.