Two numbers determine what you pay when you sell an asset in the UK: 18% and 24%. These are the capital gains tax rates 2026 that apply to almost every disposal made by individuals from a second home sale to a share portfolio exit to a business asset disposal. But knowing the percentages is only the starting point. Where your gain lands within those capital gains tax rates 2026 bands, and how much of your taxable band remains after your income is factored in, determines the actual size of your bill.
This guide gives you a complete, practical breakdown of the capital gains tax rates 2026/27 structure who pays what, which assets fall into which category, how the rates interact with income tax thresholds, and what planning moves can legally reduce your capital gains tax rates 2026 liability and shift more of your gain into the lower bracket before you complete a disposal.
Capital Gains Tax Rates 2026/27: The Core Numbers
For the 2026/27 tax year (6 April 2026 to 5 April 2027), the capital gains tax rates 2026 confirmed by HMRC on their capital gains tax rates page are:
| Taxpayer Type | CGT Rate | Applies When |
|---|---|---|
| Individual — Basic Rate | 18% | Combined income + gain below £50,270 |
| Individual — Higher/Additional Rate | 24% | Combined income + gain above £50,270 |
| Personal Representative (Estate) | 24% | All gains — flat rate |
| Trustee of a Settlement | 24% | All gains — flat rate |
| Non-resident Individual (UK Property) | 18% / 24% | Subject to specific non-resident CGT rules |
These rates apply equally to residential property, shares, and other chargeable assets. The previous distinction between residential property rates (higher) and other assets (lower) no longer exists it was unified following the Autumn Budget of October 2024. This simplification means both a buy-to-let property and a share portfolio are taxed at the same rate for the 2026/27 tax year.
How the Basic Rate and Higher Rate Bands Work
The rate you pay is not fixed it is determined by your position within the income tax bands. Your employment income, rental income, dividends, and pension withdrawals fill the basic rate band first. Any capital gain that pushes your combined total above the higher rate threshold of £50,270 is taxed at 24%. Gains that sit within the remaining basic rate band are taxed at 18%.
Here is how this works in practice. Your basic rate band is £37,700 (the difference between the personal allowance of £12,570 and the higher rate threshold of £50,270). If your salary uses £30,000 of the basic rate band, only £7,700 of basic rate band remains available for your capital gains. A gain of £20,000 (after deducting the £3,000 annual exempt amount) would therefore split as follows: £7,700 taxed at 18% and £12,300 taxed at 24%.
This interaction is one of the most frequently misunderstood aspects of CGT. It is also one of the most powerful areas for planning because pension contributions, charitable donations, and other reliefs that extend the basic rate band can directly reduce the proportion of your gain subject to 24%. Our step-by-step guide to how capital gains tax is calculated in the UK includes a worked example showing exactly how this split applies.
Residential Property CGT Rates 2026/27
For the 2026/27 tax year, residential property gains are taxed at the same rates as other assets 18% for basic rate taxpayers and 24% for higher rate taxpayers. This was not always the case. Prior to October 2024, residential property attracted a 28% higher rate. The alignment to 24% was part of the Autumn Budget changes.
There is one important exception: Business Asset Disposal Relief (formerly Entrepreneurs’ Relief), which applies to qualifying business disposals, not to residential property. Qualifying business assets benefit from an 18% rate in 2026/27, having risen from 10% (up to 5 April 2025) to 14% for 2025/26, and to 18% from 6 April 2026 following the Autumn Budget 2024 reforms.
For landlords and second homeowners, the 60-day reporting and payment rule still applies. After completing a sale of UK residential property, you must submit a return and pay any CGT owed within 60 days of completion regardless of whether you also file a self-assessment tax return. Missing this deadline triggers automatic penalties. If you have already missed it, our guide on what to do after missing the 60-day CGT deadline outlines your options.
CGT Rates on Shares and Investments in 2026/27
Shares, unit trusts, bonds, and other financial investments are taxed at 18% (basic rate) or 24% (higher rate) identical to property. There is no special rate for long-term holdings; unlike the US system, the UK does not apply a preferential rate for assets held beyond a certain period.
The practical implication: investors who have built significant unrealised gains in their portfolios cannot time out of a high-rate bracket by simply holding longer. The only effective strategies for shares are annual allowance harvesting (realising up to £3,000 per tax year), ISA migration through bed-and-ISA operations, interspousal transfers before a sale, and using pension contributions to extend the basic rate band. For a comprehensive overview of tax planning for investors, the Hargreaves Lansdown 2026/27 tax guide is an authoritative reference.
Carried Interest and Special Rate Exceptions
Gains from carried interest a form of profit-sharing arrangement common in private equity are taxed at a different rate: 32% from 6 April 2026 onwards, rising further to 34% from April 2026 under legislation currently progressing through parliament. This is a specialist area that sits outside the standard CGT framework covered here. For general investors, the 18%/24% structure applies universally to non-business assets.
A Worked Rate Calculation: Property Sale in 2026/27
Consider this example to see how the 2026/27 CGT rates apply in practice. A landlord earns £35,000 per year and sells a buy-to-let property, realising a gross gain of £55,000 after all allowable costs. After deducting the £3,000 annual exempt amount, the taxable gain is £52,000.
Their taxable income is £35,000 minus the personal allowance of £12,570 = £22,430. The basic rate band of £37,700 is £22,430 used by income, leaving £15,270 of basic rate band available for the capital gain.
The first £15,270 of the £52,000 taxable gain is taxed at 18% = £2,748.60. The remaining £36,730 is taxed at 24% = £8,815.20. Total CGT: £11,563.80.
Without planning, nearly 71% of the gain in this example falls into the higher rate bracket. A pension contribution of £15,270 made before the tax year ends would shift the entire gain into the 18% rate, producing a CGT bill of £9,360 instead a saving of £2,203.80 while also generating pension tax relief on the contribution itself.
How to Legally Reduce Your CGT Rate
Extend the Basic Rate Band with Pension Contributions
Every £1 of gross personal pension contribution you make extends your basic rate band by £1. This is the single most effective technique for shifting gains from 24% to 18%. It is particularly powerful for higher earners with substantial gains from property sales.
Use Interspousal Transfers
Transferring ownership of part of an asset to a lower-earning spouse before a sale allows their basic rate band to absorb a larger portion of the gain at 18%. Even better, each spouse independently applies their £3,000 annual exempt amount. Our guide on CGT rules for gifting assets to family members covers the mechanics of no-gain/no-loss transfers.
Time Your Disposal Across Two Tax Years
Completing part of a disposal before 5 April and the remainder after 6 April allows you to apply two annual exempt amounts and potentially two sets of basic rate band. This strategy is most applicable to share sales where the completion date is flexible.
Offset Capital Losses
Current-year losses on other assets automatically reduce your taxable gain before rates are applied. Carried-forward losses from previous years work similarly. Registering all historical losses with HMRC within the four-year window is essential groundwork for any investor with multiple disposals. See our detailed guide on 8 legal strategies to reduce capital gains tax.
Private Residence Relief for Your Main Home
If you sell your principal private residence, you may be fully exempt from CGT under Private Residence Relief. The relief covers the period you lived in the property as your main home, plus a 9-month final period. This is the most generous CGT relief available in the UK system and should always be analysed before completing any property sale.
CGT Rates Across Different Asset Types: 2026/27 Summary
| Asset Type | Basic Rate CGT | Higher Rate CGT | Special Rules |
|---|---|---|---|
| Residential Property | 18% | 24% | 60-day reporting; PRR may apply |
| Shares and Securities | 18% | 24% | ISA wrapper exempts gains |
| Business Assets (BADR) | 18% | 18% | Up to £1m lifetime limit |
| Personal Possessions (>£6,000) | 18% | 24% | Chattel exemption rules apply |
| Commercial Property | 18% | 24% | Annual return; no 60-day rule |
| Carried Interest | 32% | 32% | Specialist rate; separate rules |
Expert CGT Planning Before Your Next Disposal
At Capital Gains Tax Experts, we work exclusively on CGT planning and HMRC compliance. Every client engagement focuses on one outcome: maximising what you keep after a disposal, through legally compliant strategies applied before completion not after.
Whether you are selling a rental property, exiting a business, or liquidating a share portfolio, the optimal time to plan is before you exchange contracts. Our team analyses your income position, identifies your available basic rate band, assesses available reliefs, and structures interspousal transfers or loss offsetting where appropriate.
For independent reference, the Low Incomes Tax Reform Group CGT guide and Association of Taxation Technicians 2026/27 update provide authoritative independent coverage of the current rate framework.
To see how we apply these strategies in practice, explore our guide on CGT for landlords selling rental property, or book a consultation via our free CGT advice page.
Frequently Asked Questions: Capital Gains Tax Rates 2026
What is the capital gains tax rate in the UK for 2026/27?
The standard CGT rates for 2026/27 are 18% for basic rate taxpayers and 24% for higher and additional rate taxpayers. These rates apply to residential property, shares, and most other chargeable assets. Personal representatives and trustees pay a flat 24% on all gains.
Did capital gains tax rates change in 2026?
No changes to the standard CGT rates were announced for the 2026/27 tax year. The rates of 18% and 24% carried over unchanged from 2025/26. The major rate changes occurred in October 2024, when the Autumn Budget raised the higher rate from 20% to 24% and the basic rate from 10% to 18% for non-residential assets, while simultaneously reducing the residential property higher rate from 28% to 24% effectively unifying all CGT rates.
How much capital gains tax do I pay on a property in 2026?
For a residential property disposal in 2026/27, you pay 18% on gains that fall within your remaining basic rate band (after income tax), and 24% on gains that exceed the higher rate threshold of £50,270 (combined income plus taxable gain). The exact amount depends on your total income for the year. Using the £3,000 annual exempt amount and deducting all allowable costs before calculating reduces your taxable gain.
Is capital gains tax the same for property and shares in 2026?
Yes. Following the October 2024 Budget, CGT rates on residential property and shares were aligned. Both are now taxed at 18% (basic rate) and 24% (higher rate) for 2026/27. This ended the previous system where residential property was taxed at 18%/28% and shares at 10%/20%.
What is Business Asset Disposal Relief in 2026/27?
Business Asset Disposal Relief (formerly Entrepreneurs’ Relief) provides a reduced 18% CGT rate on qualifying business asset disposals for 2026/27, subject to meeting specific conditions including a two-year minimum ownership period. The lifetime limit remains at £1 million of qualifying gains. This rate rose from 10% (on disposals up to 5 April 2025) to 14% (2025/26), then to 18% from 6 April 2026 onwards.
Take Control of Your CGT Liability Today
Every percentage point matters when you’re facing a five or six-figure tax bill. The difference between 18% and 24% on a £100,000 gain is £6,000 money that stays in your pocket with the right planning, or disappears to HMRC without it. The capital gains tax rates 2026 are not going to change in your favour any time soon. What changes is how effectively you use the planning tools available to you.
Book a consultation with our team at Capital Gains Tax Experts before your next disposal and we will identify exactly which combination of strategies pension contributions, interspousal transfers, loss harvesting, or disposal timing gives you the best outcome for your specific circumstances.
