Capital Gains Tax on shares in 2026/27: the allowance, rates and what is exempt
Published · 3 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 shares or other assets outside an ISA. This guide explains the 2026/27 allowance, the two rates, what is exempt and how losses and reporting work.
What Capital Gains Tax is
Capital Gains Tax (CGT) is a tax on the profit you make when you sell, give away or swap something that has gone up in value. It is the gain that is taxed, not the full amount you receive. For example, if you sold a painting for £25,000 that you bought for £5,000, the gain is £20,000.
Tax years run from 6 April to 5 April. This guide covers the 2026/27 tax year, which started on 6 April 2026.
Key figures for 2026/27
The rate depends on your total taxable income plus your gains, after the tax-free allowance is taken off. This means that part of one person's gain can be taxed at 18% and the rest at 24%. Gains that qualify for Business Asset Disposal Relief are taxed at 18% from 6 April 2026.
What you pay it on
GOV.UK lists several things that can give rise to CGT when you sell or dispose of them:
- Any shares that are not held in an ISA or a PEP
- Property that is not your main home
- Your main home, if you have let it out, used it for business or it is very large
- Most personal possessions worth £6,000 or more, apart from your car
- Business assets and cryptoassets
What is not taxed
- Shares and investments held inside an ISA or PEP
- Your car
- UK government gilts and Premium Bonds
- Betting, lottery and pools winnings
- Gifts to a husband, wife, civil partner or charity, usually
Because gains inside an ISA are exempt, the 2026/27 ISA limit of £20,000 is one reason people look at how they hold investments. That is a matter for each person, and this guide does not suggest what to do.
How a gain is worked out and reported
You work out the gain on each asset, add the gains together, and take off any allowable losses. You only pay tax if the total is above the annual allowance. Several sales of shares in the same company follow their own rules, which GOV.UK explains on a separate page.
If you are registered for Self Assessment, you must report gains on your tax return when your total sale proceeds are more than £50,000, even if no tax is due. For assets such as shares, the deadline is in the tax year after you sold them. HMRC also has a "real time" Capital Gains Tax service for people who are eligible, with a deadline of 31 December in the tax year after the sale.
Losses
If you sell something for less than you paid, you can report a loss. A loss is first taken off gains made in the same tax year. If that brings your gain down to the allowance, remaining losses can be carried forward to a future year. You can claim a loss up to 4 years after the end of the tax year in which you disposed of the asset.
Who this affects
Check before you act
Rules, allowances and rates can change, so it is worth confirming the current figures on the official pages linked below. If your situation is complicated, HMRC or a regulated tax adviser can help.
Sources
For information only. See our disclaimer and editorial standards. Spotted an error? Tell us.
