Key facts
- Residential property CGT: 18% basic rate, 24% higher rate
- Other assets CGT: 18% basic rate, 24% higher rate
- Annual exempt amount 2026/27: £3,000
- Property sales: report and pay CGT within 60 days of completion
CGT rates at a glance: 2026/27
| Asset type | Basic rate taxpayer | Higher/additional rate taxpayer |
|---|---|---|
| Residential property | 18% | 24% |
| Other assets (shares, business assets) | 18% | 24% |
| Business Asset Disposal Relief (qualifying) | 18% | 18% |
| Investors' Relief | 18% | 18% |
Source: HMRC, Capital Gains Tax rates 2026/27.
Note: these rates apply after deducting the annual exempt amount (£3,000) and any allowable costs. Your CGT rate is determined by which income tax band the gain falls in after being added to your total income.
How your CGT rate is determined
Your capital gain is added on top of your income for the tax year. The rate is determined by which income tax band the combined total falls in.
Income tax bands used by salary: basic rate band = £12,571 to £50,270
Salary uses: £38,000 minus £12,570 = £25,430 of the basic rate band
Remaining basic rate band: £50,270 minus £38,000 = £12,270
Annual exempt amount applied to gain: £30,000 minus £3,000 = £27,000 taxable gain
First £12,270 of taxable gain: in basic rate band, taxed at 18% (residential property) = £2,209
Remaining £14,730: in higher rate band, taxed at 24% = £3,535
Total CGT = £5,744
Capital Gains Tax Calculator
Model your specific gain and income combination to see your exact CGT liability.
The annual exempt amount
Every individual is entitled to an annual CGT exempt amount. For 2026/27, this is £3,000 (reduced from £6,000 in 2023/24 and £12,300 in 2022/23). The dramatic reductions in recent years mean this shield now covers only modest gains.
The annual exempt amount cannot be carried forward. If you do not use it in a tax year, it is lost. This creates a planning opportunity: if you have a large portfolio of shares showing gains, selling a portion each year to use the £3,000 exempt amount (and immediately rebuying if desired, after 30 days) systematically reduces the embedded gain without triggering CGT.
Expert Tip
Couples (married or civil partners) can transfer assets between each other without triggering CGT. This means both partners' £3,000 exempt amounts can be used. If you are about to sell a property or shares with a significant gain, transferring a portion of the asset to your spouse before sale doubles the combined exempt amount to £6,000 and may also split the gain across two different income tax bands. Always take professional advice before significant disposals.
Main residence relief: when you do not pay CGT on your home
If you sell a property that has been your main residence for the entire period of ownership, you pay no CGT regardless of the gain. This is principal private residence (PPR) relief.
You still benefit from PPR relief on the last 9 months of ownership even if the property was not your main residence during that final period (for example, if you had already moved into a new property before completing the sale).
Partial PPR relief: If you let your main home for part of the ownership period, PPR relief still applies to the proportion of time it was your main residence. The gain is apportioned between qualifying and non-qualifying periods.
The 60-day reporting rule for property
When you sell a UK residential property that generates a taxable gain (after reliefs), you must report the gain and pay any CGT due within 60 days of completion. This is separate from self-assessment. You do so through HMRC's "Report and pay Capital Gains Tax on UK property" service at gov.uk.
Missing the 60-day deadline attracts an automatic £100 penalty, with larger penalties accruing at 6 months and 12 months. The 60-day rule applies to all residential property disposals, including:
- Buy-to-let properties
- Second homes
- Properties inherited and subsequently sold
- Former main residences where the gain exceeds the PPR entitlement
Buy-to-let property: CGT planning considerations
For landlords selling a buy-to-let property, the most significant CGT planning tools are:
- Time the disposal carefully: If your income in one tax year is lower (for example, if you take unpaid leave, retire, or reduce working hours), selling property in that year means more of the gain falls within the basic rate band (18% vs 24%).
- Offset allowable expenses: The costs of buying, selling, and improving the property are deductible from the gain. Improvement costs (not repair and maintenance) reduce the gain directly. Keep records of all qualifying expenditure.
- Gift to spouse before sale: Transferring the property (or a share of it) to a lower-earning spouse before sale allows part of the gain to be taxed at their marginal rate.
See the Buy-to-Let Calculator for a full return on investment analysis including CGT.
CGT on shares
For shares and other assets (excluding residential property), the rates are 18% (basic rate band) and 24% (higher rate). Since the Autumn Budget 2025, From 30 October 2024, capital gains tax on other assets such as shares rose from 10% and 20% to 18% and 24%, the same rates as residential property, and those rates continue for 2026/27. The current structure for 2026/27 maintains the distinction between property and other assets.
Bed and ISA strategy
If you hold shares outside an ISA showing a gain, you can sell them, realise the gain (using the £3,000 exempt amount if available), and repurchase within a Stocks and Shares ISA. Future growth within the ISA is completely free from CGT. This is a widely used and HMRC-accepted strategy.
Related Calculators
Frequently Asked Questions
18% for basic rate taxpayers and 24% for higher and additional rate taxpayers on residential property gains in 2026/27. Rates are determined by where the gain falls when added to your total income.
Usually no. Sales of your main residence are covered by principal private residence relief in most cases. CGT applies if you have let the property, if it partly served as business premises, or if you owned additional properties and nominated another as your main residence.
£3,000. This is deducted from your net gain before CGT is calculated. It cannot be carried forward to the next tax year.
Within 60 days of completing the sale. This is a strict deadline with automatic penalties for late filing. The payment is made through the HMRC Report and pay Capital Gains Tax on UK property online service.
18% for basic rate taxpayers and 24% for higher and additional rate taxpayers on gains from shares and other non-property assets, after the £3,000 annual exempt amount.
PPR relief exempts CGT on gains from selling your main home. You also get relief on the final 9 months of ownership even if you no longer live there. Partial relief applies if you let part of the home during ownership.
Yes. Assets can be transferred between spouses or civil partners without triggering CGT, allowing both partners to use their £3,000 annual exempt amount, giving a combined £6,000 shield before tax.
Business Asset Disposal Relief (formerly Entrepreneurs' Relief) taxes qualifying gains on the sale of a business at 18% instead of the normal 18% or 24% rates, up to a lifetime limit of £1 million of gains. It applies to shares in a personal company or the sale of a business you have owned for at least two years.
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James Hartley is a CIMA qualified financial analyst and Founder and Lead Financial Analyst at WhatsUK, with 8+ years in UK tax, payroll, and compliance. He builds every calculator on WhatsUK and authors all editorial content, ensuring every figure is verified against official HMRC sources before publication.
Sources & Official References
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Disclaimer: This calculator provides estimates based on standard HMRC rates for 2026/27. Results may vary based on individual circumstances. This is not financial advice. Always consult a qualified accountant or CIMA-qualified financial adviser for personal tax matters.