How it works
Taxable gain = gains − losses − £3,000 annual exempt amount. Gains that fit in the unused part of the £37,700 basic rate band (after your taxable income) are taxed at 18%; the rest at 24%.
A worked example
A £20,000 gain on shares with a £35,000 salary leaves £17,000 taxable. £15,270 fits in the basic rate band and is taxed at 18% (£2,748.60); the other £1,730 is taxed at 24% (£415.20). Total: £3,163.80.
What to keep in mind
2026/27 rates for individuals in England, Wales, Scotland and Northern Ireland (Capital Gains Tax uses UK-wide bands). Treats income as employment or similar income with the standard Personal Allowance. Excludes Business Asset Disposal Relief, Private Residence Relief, gift holdover and earlier years' losses beyond what you enter. Your main home is usually exempt.
How Capital Gains Tax works
You pay Capital Gains Tax on the profit (gain) when you sell or give away something that has gone up in value, not on the whole sale price. Everyone has a £3,000 tax-free allowance each tax year. Losses on other assets in the same year, or reported losses from earlier years, can be set against your gains first.
18% or 24%?
The rate depends on your income. Add your taxable income to your taxable gain. The part that falls within the £37,700 basic rate band is taxed at 18%, and anything above it at 24%. These rates apply to shares, crypto and residential property alike from 2026/27.
Selling a second home or buy-to-let
If you sell a UK residential property that is not your main home and owe tax, you must report it and pay within 60 days of completion. Your main home is usually exempt through Private Residence Relief.
Ways to pay less
Use your £3,000 allowance every year, hold investments in an ISA or pension where gains are tax-free, transfer assets to a spouse or civil partner before selling so both allowances are used, and claim any losses within four years.
Frequently asked questions
What is the Capital Gains Tax allowance for 2026/27?
£3,000 per person. Trusts get £1,500.
What is the Capital Gains Tax rate in 2026/27?
18% on gains within the basic rate band and 24% above it, for individuals.
Do I pay Capital Gains Tax on crypto?
Yes. Crypto is treated like other assets: you pay on the gain when you sell, swap or spend it.
Do I pay Capital Gains Tax when I sell my home?
Usually not, if it has been your main home the whole time you owned it.
Do I pay Capital Gains Tax on ISAs?
No. Gains inside an ISA or pension are tax-free.
Sources & rates
Rates checked on 7 October 2026.
For general information and planning, not personalised financial or tax advice. Verify important decisions with a qualified adviser.