CGT allowance: 2026/27
CGT Allowance 2026/27: £3,000 Annual Exempt Amount Explained
Complete guide to the UK Capital Gains Tax Annual Exempt Amount in 2026/27. £3,000 per individual per tax year, frozen through April 2030. History since 2020 (£12,300 → £6,000 → £3,000 - the steepest single-allowance cut in recent decades). Per-person not per-asset, spouse no-gain-no-loss transfer to access 2 × AEA, trust £1,500 half-allowance, 4 worked scenarios across share + property disposals, exempt-asset list, and 4 strategies to maximise the allowance.
Key 2026/27 CGT allowance figures
Individual AEA
£3,000
Per person per year, all asset types combined
Couple combined
£6,000
When asset is jointly owned + no-gain-no-loss transfer at Section 58 TCGA
Trust AEA
£1,500
Half-individual rate. Multiple settlor trusts share single £1,500.
AEA history - 75% real-terms cut since 2022/23
| Tax year | AEA | YoY change |
|---|---|---|
| 2020/21 | £12,300 | — |
| 2021/22 | £12,300 | — |
| 2022/23 | £12,300 | — |
| 2023/24 | £6,000 | -£6,300 (-51%) |
| 2024/25 | £3,000 | -£3,000 (-50%) |
| 2025/26 | £3,000 | — |
| 2026/27 ← current | £3,000 | — |
| 2027/28 | £3,000 | — |
| 2028/29 | £3,000 | — |
| 2029/30 | £3,000 | — |
Two sharp cuts in successive years (April 2023 halved £12,300 → £6,000; April 2024 halved again to £3,000). Confirmed frozen at £3,000 through April 2030 by the Autumn Budget 2024. Combined with ~12% CPI inflation across the freeze period, real-terms reduction approaches 80% from 2022/23 levels.
4 worked AEA scenarios
| Scenario | Total gain | Per-owner gain | AEA used | Taxable | CGT |
|---|---|---|---|---|---|
| Solo small-gain share sale Under £3k AEA → zero CGT. Still report if proceeds exceed £50k. | £2,800 | £2,800 | £2,800 | £0 | £0 |
| Solo £10k gain higher-rate £3k AEA → £7k taxable × 24% = £1,680. | £10,000 | £10,000 | £3,000 | £7,000 | £1,680 |
| Joint sale spouse-split Split £6k each → 2× £3k AEA → £3k taxable each × 24% = £720 each, £1,440 total. | £12,000 | £6,000 | £6,000 | £6,000 | £1,440 |
| Solo £50k BTL gain higher-rate £3k AEA → £47k taxable × 24% = £11,280 (residential rate now same 24% as shares). | £50,000 | £50,000 | £3,000 | £47,000 | £11,280 |
4 strategies to maximise the £3,000 AEA
- Spread disposals across tax years: sell £6,000 on 5 April + £6,000 on 6 April = 2 × £3,000 AEA = total £6,000 tax-free vs single-day sale £3,000 tax-free. Tax-year boundary 5/6 April is the cleanest split point.
- Joint-name assets: hold investments in joint names with spouse to access 2 × £3,000 = £6,000 AEA at disposal. Apply via Form 17 trust deed if unequal-share ownership desired (e.g. 90:10 favouring the basic-rate spouse).
- "Bed and Spouse" pre-disposal transfer: transfer asset to basic-rate spouse via Section 58 TCGA no-gain-no-loss BEFORE exchange of contracts on sale. They use their own AEA + the lower 18% CGT rate. Saving = AEA × (24% - 18%) at minimum if originally higher-rate.
- Loss harvesting: sell losing positions in the same tax year as your big gain to offset under Section 16 TCGA. Capital losses unused this year carry forward indefinitely against future gains (Section 2A TCGA) - keep them available for the next big-gain year. "Bed and Breakfast" (sell + re-buy within 30 days) is BLOCKED by matching rules; "Bed and ISA" (re-buy inside an ISA wrapper) works perfectly.
Exempt disposals - no CGT regardless of AEA
- Main residence (Private Residence Relief, Section 222-226A TCGA)
- Private cars (Section 263 TCGA)
- Personal possessions / chattels under £6,000 (Section 262 TCGA - full exemption; partial relief £6k-£15k)
- ISA assets (shares, funds, IFISA inside the wrapper)
- Pension assets (SIPP, SSAS, workplace DC/DB)
- SEIS investments held 3+ years (Section 150A ITA 2007)
- EIS investments held 3+ years with IT relief received on subscription
- Charity gifts (Section 257 TCGA)
- Inter-spouse transfers (Section 58 TCGA - no-gain-no-loss)
- UK government bonds (gilts) (Section 115 TCGA)
- Premium Bonds (no CGT on prize amounts)
- Foreign currency for personal use (Section 269 TCGA)
Frequently asked questions
What is the CGT allowance for 2026/27?
£3,000 per individual per tax year - the "Annual Exempt Amount" (AEA) defined in Section 3 TCGA 1992. This is the slice of total capital gains in a tax year that's tax-free. Frozen at £3,000 since April 2024 and confirmed frozen through at least April 2030 (Autumn Budget 2024). It applies to gains from ALL asset types combined - shares, crypto, property, business assets, art - not £3,000 per asset. Each individual gets their own AEA - a married couple has 2 × £3,000 = £6,000 combined for jointly-owned assets. If you don't use the AEA in a tax year, it's LOST - no carry-forward (unlike pension Annual Allowance which has 3-year carry-forward).
How has the CGT allowance changed in recent years?
Three sharp cuts since 2022. 2022/23: £12,300 (was £12,300 since 2020/21 after inflation-indexing was paused). 2023/24: £6,000 (Autumn Statement 2022 cut). 2024/25: £3,000 (Autumn Statement 2022 cut, took effect April 2024). Held at £3,000 for 2025/26, 2026/27, and confirmed frozen through April 2030 by the Autumn Budget 2024. Total real-terms reduction: 75.6% in 4 years (from £12,300 to £3,000 nominally, plus ~12% inflation = ~78% real-terms cut). One of the largest single-allowance cuts in the UK personal tax code in the last 30 years. Estimated revenue impact: ~£440m/year additional CGT receipts vs the previous £12,300 regime. Estimated affected individuals: ~570,000 additional CGT payers per year vs the pre-cut counter-factual.
Is the £3,000 allowance per asset or per person?
Per person, per tax year. Applies to TOTAL gains from all asset types in that year - shares, crypto, BTL, art, jewellery, business asset disposals - all combined. So a year with £4,000 of share gains + £2,000 of crypto gains = £6,000 total gains, £3,000 AEA covers half, £3,000 is taxable. NOT £3,000 per asset class. The "per person" part matters for couples and trusts: each individual has their OWN £3,000, so married couples / civil partners can combine to £6,000 when jointly owning assets. Trusts have a HALF allowance (£1,500) per Section 3(2A) TCGA 1992 - a single discretionary trust gets £1,500 not £3,000. Multiple settlor-related trusts share a single £1,500 AEA between them under the "trust grouping" rules.
Can I split the allowance with my spouse?
Yes - inter-spouse asset transfers are at "no gain, no loss" under Section 58 TCGA 1992 (or Section 18 IHTA 1984 spousal exemption parallel for inheritance). You can transfer ownership of shares, property, or other assets to your spouse / civil partner BEFORE disposal, then both of you use your own £3,000 AEA when the asset is later sold. Worked example: husband has £30,000 unrealised gain on a share portfolio. Transfers 50% to wife (no CGT on transfer). Both sell in same tax year: husband £15k gain - £3k AEA = £12k taxable; wife £15k gain - £3k AEA = £12k taxable. Combined £24k taxable vs £27k taxable if sold alone. AEA savings: £3,000 × CGT rate = £540-£720 depending on band. Bigger savings if one spouse is basic-rate (18% CGT) vs the other higher-rate (24% CGT). Inter-spouse transfer must be ABSOLUTE (not held in trust for the original owner) and must happen BEFORE exchange of contracts on sale.
What if my total proceeds exceed £50,000 but my gain is under £3,000?
You must STILL report the disposal to HMRC even though no CGT is due - the "proceeds limit reporting requirement" (Section 8A TCGA 1992). The threshold is 4 × AEA = £12,000 normally, but since the AEA dropped to £3,000, this threshold is now £50,000 (the old £50k reporting threshold was retained when AEA was cut to avoid creating an even lower reporting trigger). Report via Self Assessment SA108 supplementary pages, even if your taxable gain after AEA is zero. Worked example: sold £55,000 of shares with £2,500 gain. No CGT due (under AEA). But proceeds > £50k = report on SA108 anyway. UK residential property disposals MUST be reported within 60 days regardless of gain via the UK Property Disposal service - that's a separate filing track from the SA108 annual return.
How do I use the AEA strategically?
Four common techniques. (1) Spread disposals across tax years: sell £6,000 of shares on 5 April + £6,000 on 6 April = total disposal spread across two tax years = 2 × £3,000 AEA used vs £3,000 for a single-day sale. Sometimes called "Bed and ISA" pattern when combined with re-buying inside an ISA. (2) Joint-name assets: hold investments jointly with spouse to access 2 × AEA at disposal. (3) "Bed and Spouse": transfer asset to basic-rate spouse before disposal so they use their own AEA + lower 18% CGT rate. (4) Loss harvesting: sell losing positions in the same tax year as your big gain to offset (Section 16 TCGA). Capital losses unused this year carry forward indefinitely against future gains. NOT a strategy: "Bed and Breakfast" (sell and re-buy same asset within 30 days) - blocked by Section 105 TCGA matching rules. Re-buying after 31+ days, or buying inside an ISA, works.
Are some disposals exempt from CGT entirely?
Yes - several. Your main residence: covered by Private Residence Relief (PRR), Section 222-226A TCGA, no CGT if it's been your main home throughout ownership. Cars: private cars are exempt under Section 263 TCGA. Personal possessions (chattels) under £6,000: exempt under Section 262 TCGA (full exemption below £6k disposal value; partial relief between £6k and £15k). ISA assets: no CGT on shares / funds sold inside an ISA wrapper. Pension assets: no CGT inside a pension (SIPP, workplace pension). SEIS investments: full CGT exemption on disposal if held 3+ years (Section 150A ITA 2007). EIS investments: gains on the EIS shares themselves are exempt if held 3+ years AND received Income Tax relief on subscription. Gifts to charities and qualifying bodies: exempt under Section 257 TCGA. Inter-spouse transfers: no-gain-no-loss as discussed. Government bonds (gilts): exempt under Section 115 TCGA.
What are the CGT rates after the AEA is used up?
Following Autumn Budget 30 October 2024, rates for 2026/27 are: 18% on gains within your unused basic-rate band (after stacking on top of income up to £50,270), 24% on gains above the £50,270 threshold. These are the rates for ALL asset types (shares, crypto, residential property, non-residential) since the October 2024 reform aligned all CGT rates. Previously residential property had higher rates (18%/28% pre-Oct 2024) and shares had lower rates (10%/20% pre-Oct 2024). Business Asset Disposal Relief (BADR): 18% on first £1m lifetime allowance for 2026/27 (up from 14% in 2025/26, 10% pre-April-2025), planned to rise to 22% from April 2026... wait, no, BADR is currently 18% throughout 2026/27 per Finance Act 2024 schedule. Trustees pay 24% flat (no basic-rate band for trusts).
How does the AEA interact with capital losses?
Capital losses are deducted from gains BEFORE applying the AEA. Worked example: £8,000 gain on shares + £2,000 loss on crypto = £6,000 net gain. Apply AEA: £6,000 - £3,000 = £3,000 taxable. Compare to NOT using the loss: £8,000 - £3,000 AEA = £5,000 taxable + £2,000 loss carried forward. The AEA-first interpretation is mathematically inferior - HMRC's approach is loss-first which preserves more AEA. In a loss-only year (all gains negative), the AEA is "lost" (no use), but losses carry forward indefinitely under Section 2A TCGA. Carried-forward losses become available against gains in the NEXT year and can be deferred / chosen strategically. Common planning: don't use carried-forward losses unless they take the gain below the AEA - keep the loss available for a future big-gain year. HMRC's Capital Gains Tax Manual (CG21500+) sets out the matching and apportionment rules in detail.
What is the deadline to file a CGT return?
Two separate filing tracks. Annual Self Assessment: file SA108 with your main SA100 return by 31 January after the end of the tax year. So 2026/27 tax-year disposals: report and pay by 31 January 2028. Online filing only via gov.uk SA. UK residential property 60-day reporting: from April 2020, disposals of UK residential property MUST be reported within 60 days of COMPLETION (not exchange) via HMRC's UK Property Disposal online service. This is on TOP of annual SA filing - you ALSO include the disposal on your SA108 year-end return with any reconciliation. Penalties for missing 60-day deadline: £100 fixed + £10/day after 3 months + 5% of tax due at 6 / 12 months. Penalties for missing SA deadline: £100 fixed + £10/day after 3 months + £300 at 6 months + £300 at 12 months. Neither penalty is escape-able by paying the tax later - they're triggered by the FILING delay, not the payment delay.
Do I have to pay CGT on overseas asset disposals?
Depends on UK residence status. UK residents: pay UK CGT on worldwide disposals (gain crystallisation rule applies regardless of where the asset is located). Foreign Tax Credit Relief usually offsets any foreign CGT paid up to your UK liability on the same disposal. UK non-residents: CGT generally NOT due on disposals of UK assets (with major exceptions for UK property since 2015 and UK indirect property holdings since 2019). Non-resident CGT on UK residential property uses standard 18%/24% rates with the same AEA. Temporary non-residents: if you're UK-resident for 4+ of the 7 tax years before becoming non-resident, then become non-resident for 5 or fewer tax years before returning, you're caught by the temporary non-residence rules (Section 10A TCGA) - gains arising during the non-resident period are taxable in the year you return to the UK. Anti-avoidance against pure relocation-for-disposal patterns. See our UK residence (SRT) guide for the residence test mechanics.
Are there any planned changes to the CGT allowance?
Held at £3,000 through at least April 2030 per Autumn Budget 2024 confirmation. No legislated future changes. The Conservative government's pre-2024 policy was to keep cutting toward zero; Labour's Autumn Budget 2024 froze it at £3,000 rather than cutting further or restoring. Lobbying from the Resolution Foundation and IFS has been mixed - some support full abolition (£0 AEA) on simplification grounds; others support raising it back to ~£6,000 for fairness. Future political swings could move it. The CGT RATE structure was changed dramatically in October 2024 (residential rate cut 28%→24%; share rate raised 20%→24% - alignment to 18%/24% for all asset types) - that was the main CGT reform in the recent budget cycle. The AEA itself was unchanged in October 2024 and remains at £3,000 going forward.
Related CGT tools and guides
- Capital Gains Tax calculator - interactive CGT calc for any disposal.
- CGT on shares - Section 104 pool, 30-day rule, Bed and ISA.
- CGT on second home - residential property CGT with PRR mechanics.
- UK crypto tax 2026/27 - Bitcoin/Ethereum/DeFi/NFT CGT.
- UK CGT rules guide - full framework including BADR schedule.
- BADR guide - Business Asset Disposal Relief 18% on first £1m lifetime.
- ISA allowance 2026/27 - holding investments tax-free inside the £20k ISA wrapper.
- Higher-rate tax 40% guide - the band that determines your CGT rate (18% basic / 24% higher).