📅 CGT must be reported and paid within 60 days of completing a property sale. For other assets, CGT is reported via Self Assessment by 31 January following the tax year.
Capital Gains Tax Rates 2026/27
Asset Type
Basic Rate Taxpayer
Higher/Additional Rate
Shares & other assets
18%
24%
Residential property
18%
24%
Since the 30 October 2024 Budget, the rate on shares and other assets was raised to match residential property — both are now 18% (basic rate) and 24% (higher/additional rate).
Annual CGT Allowance
The CGT annual exempt amount for 2026/27 is £3,000. This has been reduced significantly in recent years (it was £12,300 in 2022/23). You can use this allowance each tax year — it cannot be carried forward.
What Triggers CGT?
CGT is triggered when you dispose of an asset for more than you paid for it. Disposals include selling, gifting (at market value), swapping or transferring to another person (except your spouse or civil partner).
Ways to Reduce CGT
Use your annual allowance each year. Transfer assets to a spouse or civil partner (no CGT between spouses). Use losses from other asset disposals to offset gains. Invest through ISAs or pensions where gains are not subject to CGT. Consider timing disposals across tax years to use two annual allowances.
Frequently Asked Questions
The annual CGT exemption is £3,000 for individuals in 2026/27 (£1,500 for most trusts). Gains below this are tax-free; only the amount above it is taxed.
Since the 30 October 2024 Budget, gains on shares and other assets are taxed at 18% (basic rate) or 24% (higher/additional rate) — the same rates that already applied to residential property, following the increase from the previous 10%/20% rates.
Usually not. Private Residence Relief exempts the sale of your only or main home from CGT in almost all cases. CGT mainly applies to second properties, buy-to-let, shares outside an ISA, and other investment assets.
Each spouse or civil partner has their own £3,000 annual exemption. Assets can usually be transferred between spouses tax-free, so couples can effectively use two allowances by splitting ownership before a sale.
For most assets, CGT is reported and paid via Self Assessment by 31 January following the tax year of the disposal. UK residential property sales have a much shorter window — CGT must be reported and paid within 60 days of completion.