Capital Gains Tax in 2026/27: the £3,000 allowance, the rates and reporting
Published · 4 min read · Figures checked . UK rules and rates change, so check the official sources below before you act.
Capital Gains Tax is charged on the profit when you sell something that has gone up in value. This guide explains what it applies to, the 2026/27 allowance and rates, what is exempt, and when gains must be reported to HMRC.
Who this guide is for
This guide is general information for UK residents who sell or give away things that may have risen in value, such as shares outside an ISA, a second property or cryptoassets. It does not cover non-residents, trusts or company sales, which have extra rules. It is not advice for your own situation, and Capital Gains Tax applies across the whole UK, so the rules are the same in England, Scotland, Wales and Northern Ireland.
The figures are for the 2026/27 tax year (6 April 2026 to 5 April 2027) and were checked on GOV.UK on 13 October 2026.
What Capital Gains Tax is
Capital Gains Tax (CGT) is a tax on the profit, or gain, when you sell or otherwise dispose of something that has increased in value. You pay tax on the gain, not on the whole sale price. GOV.UK gives the example of a painting bought for £5,000 and sold for £25,000, which gives a gain of £20,000. Disposing includes selling, giving away, swapping, or getting compensation such as an insurance payout.
What it usually applies to
- Most personal possessions worth £6,000 or more
- Property that is not your main home
- Your main home, if you have let it out, used it for business, or the grounds are very large
- Shares that are not held in an ISA or PEP
- Business assets
- Cryptoassets
What is not charged
- Your car
- Personal possessions worth less than £6,000
- Assets held in ISAs and PEPs
- UK government gilts and Premium Bonds
- Betting, lottery and pools winnings
- Gifts to a husband, wife, civil partner or charity, usually
Inherited assets are generally covered by Inheritance Tax at the time. CGT only comes into play if the person who inherits them later sells or gives them away.
How the rates work
GOV.UK says the rates changed on 6 April 2026 and apply to gains made from that date. Where your gains sit in the basic rate band depends on your taxable income plus your gains, after the £3,000 allowance is taken off. You add up the gains for the tax year, take off any allowable losses, and the allowance is applied to what is left. If your total gains are below the allowance, you do not pay CGT.
Selling your main home
GOV.UK says you generally pay no CGT when you sell your home if you have only one home, have lived in it as your main home for all the time you owned it, have not let part of it out (a lodger does not count as letting), have not used part of it only for business, the grounds are under 5,000 square metres, and you did not buy it just to make a gain. If these all apply, the relief is automatic. Married couples and civil partners can count only one main home at a time. If any of them do not apply, some tax may be due.
When gains must be reported
- UK residential property: GOV.UK says you must report and pay any CGT due within 60 days of completing the sale. You do this through a Capital Gains Tax on UK property account. Joint owners each report their own gain. You may have to pay interest and a penalty if you do not report and pay on time.
- Other assets, through Self Assessment: you can report gains in a tax return for the tax year after you sold the asset.
- Other assets, through the real time service: for UK residents, gains from the 2025/26 and 2026/27 tax years can be reported online. You must report by 31 December in the tax year after the gain, and pay by 31 January. For a gain made in 2025/26, that means reporting by 31 December 2026 and paying by 31 January 2027.
- If your gains are below the allowance but you are in Self Assessment, you must still report them on your tax return if total sale proceeds were more than £50,000.
Where to get free help
Allowable costs are covered in the asset-specific GOV.UK pages, such as those for shares, property and cryptoassets. Citizens Advice and MoneyHelper offer free, impartial information if you are unsure how CGT applies to you.
Check before you act
Rates, allowances and deadlines change, and your own circumstances can change the answer. Please confirm the details on the official GOV.UK pages linked below before making any decisions.
Sources
For information only. See our disclaimer and editorial standards. Spotted an error? Tell us.
