What are the UK CGT rates for 2026/27?

From 6 April 2026, Capital Gains Tax rates are 18% for basic-rate taxpayers and 24% for higher/additional-rate taxpayers - on all asset types including residential property (second homes, buy-to-let, investments). The residential-property 28% rate was abolished in the October 2024 Budget and aligned with non-residential rates.

How does CGT stacking work with my income tax band?

Your gain is treated as the 'top slice' of your total income for the year. If your other taxable income is £40,000 and you make a £20,000 taxable gain, the first £10,270 of the gain fits in the remaining basic-rate Income Tax band (up to £50,270) and is taxed at 18%; the remaining £9,730 goes into the higher-rate band at 24%.

What is the Annual Exempt Amount (AEA)?

The Annual Exempt Amount is the tax-free allowance for gains each tax year. For 2026/27 it is £3,000 (unchanged from 2024/25). Previously it was £6,000 in 2023/24 and £12,300 pre-April-2023. You can only use it in the year the gain arises - no carry-forward.

What is Business Asset Disposal Relief (BADR)?

BADR (formerly Entrepreneurs' Relief) is a reduced CGT rate on qualifying gains when selling all or part of a trading business. The rate was 10% until April 2025, rose to 14% for 2025/26, and is 18% for 2026/27 onwards . Lifetime limit: £1 million of gains. For 2026/27 the BADR rate equals the basic-rate CGT - so it only saves tax for higher-rate taxpayers (6pp saving, 24% → 18%).

Do I pay CGT on my main home?

No - Private Residence Relief (PRR) exempts your main home from CGT for periods you lived in it as your only or main residence, plus the last 9 months. Second homes, buy-to-let, holiday lets, and inherited homes you never lived in all DO attract CGT. This calculator is designed for those - it excludes main-residence PRR calculations.

What about crypto and shares?

HMRC treats cryptoassets as property for CGT - same 18% / 24% rates apply. Each disposal (sell, swap, spend) is a taxable event. Pooling rules apply (share-matching rules 'same day' / '30-day' / 'section 104 pool'). Use the aggregated annual gain across all disposals, minus AEA, minus any allowable costs.

What allowable costs can I deduct?

Legal and professional fees on acquisition and disposal; stamp duty paid on purchase; estate agent / broker / exchange fees; and capital improvements that enhance the asset's value (a new extension - not routine repairs). Costs must be directly linked to acquiring, disposing of, or improving the asset.

Most gains are reported and paid via Self Assessment by 31 January after the tax year in which the gain arose. UK residential property disposals have a faster rule: you must report the gain and pay the tax within 60 days of completion using HMRC's online 'Report and pay Capital Gains Tax on UK property' service.

Capital Gains Tax on £5,000 Gain UK 2026/27

A £5,000 chargeable gain in 2026/27 costs £360 for a basic-rate taxpayer and £480 for a higher-rate taxpayer. The first £3,000 is sheltered by the Annual Exempt Amount; the rest stacks on top of your other income at the 18% / 24% CGT rates set by the October 2024 Budget.

Basic-rate taxpayer

£360

Shares / crypto, £30k other income. Effective 18.0% on the taxable gain.

Higher-rate taxpayer

£480

Shares / crypto, £60k other income. Effective 24.0% (most of the gain at 24%).

Residential property

£480

Second home / BTL (not main residence), £60k other income. Same 18% / 24% rates since Oct 2024.

With BADR claim

£360

Qualifying trading business disposal. Flat 18% on first £1m lifetime - saves £120 vs higher rate.

How the £5,000 gain is taxed

The gross gain is £5,000. Subtract the £3,000 Annual Exempt Amount and £2,000 is taxable. For a higher-rate taxpayer that splits as:

Slice	Rate	Amount	Tax
Basic-rate band room (after £60k income)	18%	£0	£0
Above the £50,270 threshold	24%	£2,000	£480
Total higher-rate CGT		£2,000	£480

Net proceeds (sale minus tax) for the higher-rate case: £54,520 out of a £55,000 disposal at £50,000 cost.

Reporting and payment

Most disposals are reported via Self Assessment by 31 January after the tax year the gain arose. UK residential property has a faster rule - 60 days from completion via HMRC's "Report and pay Capital Gains Tax on UK property" service. The £5,000 gain you're modelling here will need to be aggregated with any other gains in the same tax year before applying the £3,000 AEA.

Want to model the exact composition (allowable costs, multiple disposals, BADR with prior lifetime use)? Use the full Capital Gains Tax calculator.

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Frequently asked questions

What are the UK CGT rates for 2026/27?: From 6 April 2026, Capital Gains Tax rates are 18% for basic-rate taxpayers and 24% for higher/additional-rate taxpayers - on all asset types including residential property (second homes, buy-to-let, investments). The residential-property 28% rate was abolished in the October 2024 Budget and aligned with non-residential rates.
How does CGT stacking work with my income tax band?: Your gain is treated as the 'top slice' of your total income for the year. If your other taxable income is £40,000 and you make a £20,000 taxable gain, the first £10,270 of the gain fits in the remaining basic-rate Income Tax band (up to £50,270) and is taxed at 18%; the remaining £9,730 goes into the higher-rate band at 24%.
What is the Annual Exempt Amount (AEA)?: The Annual Exempt Amount is the tax-free allowance for gains each tax year. For 2026/27 it is £3,000 (unchanged from 2024/25). Previously it was £6,000 in 2023/24 and £12,300 pre-April-2023. You can only use it in the year the gain arises - no carry-forward.
What is Business Asset Disposal Relief (BADR)?: BADR (formerly Entrepreneurs' Relief) is a reduced CGT rate on qualifying gains when selling all or part of a trading business. The rate was 10% until April 2025, rose to 14% for 2025/26, and is 18% for 2026/27 onwards. Lifetime limit: £1 million of gains. For 2026/27 the BADR rate equals the basic-rate CGT - so it only saves tax for higher-rate taxpayers (6pp saving, 24% → 18%).
Do I pay CGT on my main home?: No - Private Residence Relief (PRR) exempts your main home from CGT for periods you lived in it as your only or main residence, plus the last 9 months. Second homes, buy-to-let, holiday lets, and inherited homes you never lived in all DO attract CGT. This calculator is designed for those - it excludes main-residence PRR calculations.
What about crypto and shares?: HMRC treats cryptoassets as property for CGT - same 18% / 24% rates apply. Each disposal (sell, swap, spend) is a taxable event. Pooling rules apply (share-matching rules 'same day' / '30-day' / 'section 104 pool'). Use the aggregated annual gain across all disposals, minus AEA, minus any allowable costs.
What allowable costs can I deduct?: Legal and professional fees on acquisition and disposal; stamp duty paid on purchase; estate agent / broker / exchange fees; and capital improvements that enhance the asset's value (a new extension - not routine repairs). Costs must be directly linked to acquiring, disposing of, or improving the asset.
When do I pay CGT?: Most gains are reported and paid via Self Assessment by 31 January after the tax year in which the gain arose. UK residential property disposals have a faster rule: you must report the gain and pay the tax within 60 days of completion using HMRC's online 'Report and pay Capital Gains Tax on UK property' service.