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Guide

Capital Gains Tax 2026/27

For 2026/27, Capital Gains Tax has an annual exempt amount of £3,000. Gains within the basic rate band are taxed at 18%, and gains above it at 24%. The same rates apply to residential property. Business Asset Disposal Relief is 18% from 6 April 2026, with a £1 million lifetime limit.

Step by step

  1. 1Work out the gain for each asset: sale proceeds minus the purchase cost and allowable costs
  2. 2Deduct the £3,000 annual exempt amount. It is per person, not per gain
  3. 3Add the gain to your other income to see how much falls within the basic rate band. The rate is 18% within the band and 24% above it
  4. 4The same 18% and 24% rates apply to gains on residential property
  5. 5Business Asset Disposal Relief is 18% from 6 April 2026, up from 14% in 2025/26. The lifetime limit is £1 million
  6. 6Your main home is usually exempt under Private Residence Relief. Check the exceptions before relying on it
  7. 7Report and pay Capital Gains Tax on a UK residential property sale within 60 days of completion if tax is due
  8. 8Report other gains through Self Assessment by 31 January after the tax year ends

Common questions

What is the Capital Gains Tax annual exempt amount for 2026/27?

£3,000 per person. Gains above that are taxed at 18% within the basic rate band and 24% above it, including gains on residential property.

When must I report a residential property sale?

If Capital Gains Tax is due on a UK residential property sale, report and pay within 60 days of completion. Other gains are reported through Self Assessment.

Common mistakes

  • Forgetting that the annual exempt amount is per person, not per sale
  • Missing the 60-day deadline for a residential property sale with tax due
  • Assuming Private Residence Relief covers a home used for business or let out
  • Using last year's Business Asset Disposal Relief rate

Related guides

Capital Gains Tax calculator

Last checked against GOV.UK: 28 October 2026. Tax year 2026/27.

Not affiliated with HMRC. General information, not professional tax advice. Check GOV.UK or speak to a qualified adviser for your situation.