UK capital gains tax in 2026: what you really pay and how to pay less

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You're selling shares, crypto, a flat or a business while living in the UK, or just after leaving. This guide shows what you'll really pay in 2026/27, which reliefs cut the bill, and how timing your move can change the answer.

United Kingdom capital gains tax in 2026: the key figures

Is this guide for you?

Read on if you…

• are UK resident and sell shares, funds, crypto or property;
• plan to leave or arrive in the UK and want to time a big sale;
• sell a company you founded.

Probably not your case if you…

• trade so often that HMRC treats it as a business – that's income tax;
• only receive salary and hold everything in an ISA or pension.

How much capital gains tax do you really pay in the UK?

Capital gains tax (CGT) is charged on the profit when you sell or give away an asset. The profit is the sale price minus what you paid and allowable costs, like broker fees or legal fees.

Since 30 October 2024, the same two rates apply to almost every asset:

How the bands work

Your gain sits on top of your taxable income. If you earn £40,000, you have about £10,270 of basic-rate band left (it ends at £50,270). Gains in that space pay 18%. Everything above pays 24%.

Scotland's income tax bands don't change this. CGT uses the UK-wide bands everywhere.

Funds and dividends

Accumulation units in a fund still count as dividends each year for income tax. Offshore funds without reporting fund status – an HMRC label for funds that report income each year – are worse. Their gains are taxed as income, up to 45%.

Which exemptions and reliefs cut the bill?

• Annual exempt amount: the first £3,000 of net gains each year. It doesn't carry forward.
• ISAs: up to £20,000 a year goes in; gains and income inside are tax-free for life.
• Pensions: no CGT on investments inside a registered pension.
• Private Residence Relief: no CGT on your only or main home, including the last 9 months of ownership.
• Spouse transfers: move assets to your spouse at no gain, no loss, and use both allowances.
• Losses: claim within 4 years; carry forward indefinitely against future gains.
• EIS shares: gains are exempt after 3 years, and you can defer other gains by reinvesting.
• Business Asset Disposal Relief (BADR): 18% from 6 April 2026 (14% in 2025/26) on up to £1 million of lifetime gains. You need at least 5% of a trading company, and to be an employee or officer, for 2 years.

Share matching rules

UK rules decide which shares you sold. First, shares bought the same day. Then shares bought in the next 30 days – the bed and breakfast rule. Then the average cost of your section 104 pool. So selling and rebuying the next day doesn't crystallise a loss. Buying back inside an ISA does.

Crypto follows the same matching rules. Details are in crypto taxes in the UK.

Do residents and non-residents pay the same?

No. UK residents pay CGT on worldwide gains. Non-residents pay only on UK land and property, and on shares in companies rich in UK property.

Whether you're resident is decided by the Statutory Residence Test – day counts and ties. Check yours in our guide to UK tax residency.

New arrivals: the 4-year FIG regime

If you weren't UK resident in the previous 10 tax years, you can claim the foreign income and gains (FIG) regime for your first 4 years. Foreign gains are then exempt, even if you bring the money to the UK. The cost: you lose the £3,000 allowance for that year. See UK tax incentives for expats.

No step-up for new arrivals

Here's a trap for arrivals: if you sell after becoming resident, you're taxed on the full gain since purchase. There's no general step-up in cost. So consider selling big winners before you become resident, if your old country doesn't tax them.

Is there a UK exit tax?

There's no general exit tax for individuals. Leave the UK and sell foreign shares later, and the UK normally has no claim.

Here's the catch: the temporary non-residence rule. If you were resident for 4 of the 7 years before leaving and return within 5 years, gains made while away on assets you owned before leaving are taxed in your year of return.

Plan the exit properly with the guide to ceasing UK tax residency.

How do you report and pay?

1. UK residential property: report and pay within 60 days of completion, through a UK property account. This applies to residents and non-residents alike.
2. Everything else: report on your Self Assessment return by 31 January after the tax year ends.
3. Real-time option: you can report shares and crypto during the year through the real-time CGT service.
4. Proceeds over £50,000: you must report, even if there's no tax to pay.

Common mistakes (and what they cost)

• Missing the 60-day property deadline → late-filing penalties from £100, plus interest at Bank Rate plus 4%.
• Selling and rebuying within 30 days → the loss you wanted to harvest doesn't count.
• Not claiming losses within 4 years → they're gone for good.
• Returning to the UK too early → gains made abroad become taxable on return.
• Holding non-reporting offshore funds → gains taxed as income at up to 45% instead of 24%.

Frequently asked questions

What is the capital gains tax rate in the UK for 2026?

For 2026/27, CGT is 18% on gains that fall within your remaining basic-rate band and 24% on gains above it. The same rates apply to shares, funds, crypto and residential property. Business Asset Disposal Relief gives 18% on up to £1 million of lifetime gains. The first £3,000 of gains each year is tax-free.

What is the CGT allowance in the UK in 2026?

The annual exempt amount is £3,000 per person for 2026/27, the same as the two previous years. It can't be carried forward. Married couples and civil partners each have their own £3,000, and can transfer assets between them without tax to use both. Trustees generally get half, £1,500.

Do non-residents pay capital gains tax in the UK?

Only on UK land and property, including indirect holdings in property-rich companies. Non-residents don't pay UK CGT on shares, funds or crypto, unless the temporary non-residence rule catches them when they return. Any sale of UK residential property must be reported within 60 days, even if there's no gain.

Is crypto taxed as capital gains in the UK?

Usually yes. For most individuals, selling, swapping or spending crypto is a disposal subject to CGT at 18% or 24%. The same-day, 30-day and pooling rules apply. Crypto received as pay, from mining or from some staking is taxed as income first, and the value at receipt becomes your cost.

How can I reduce capital gains tax legally in the UK?

Use your £3,000 allowance every year, and your spouse's. Fill your £20,000 ISA allowance and pension. Harvest losses without rebuying within 30 days. Time big sales for a year when your income is low. If you're about to move in or out, the order of selling and moving matters a lot.

Does the UK have an exit tax for individuals?

No general exit tax applies when you leave. The main trap is the temporary non-residence rule. If you were UK resident for at least 4 of the 7 years before leaving and come back within 5 years, gains on assets you held before leaving can be taxed in the year you return.

Related guides

• UK tax residency: the Statutory Residence Test explained
• How to leave the UK and cease tax residency
• Crypto taxes in the UK
• UK tax incentives for expats and digital nomads
• UK tax landscape overview
• Capital gains tax in Ireland
• Capital gains tax in Canada
• All country tax guides

Sources

• HMRC – Capital Gains Tax (GOV.UK)
• HMRC – Business Asset Disposal Relief (GOV.UK)
• HMRC – Report and pay Capital Gains Tax (GOV.UK)
• HMRC – Individual Savings Accounts (GOV.UK)
• UK legislation – Taxation of Chargeable Gains Act 1992 (legislation.gov.uk)
• PwC Worldwide Tax Summaries – United Kingdom

This guide is general information, not personalised tax advice. See how we research and review.