In 2026/27, Capital Gains Tax in the UK is charged at 18% where the gain falls within your basic-rate Income Tax band, or 24% where it exceeds it — rates that now apply to both residential property and most other assets (shares, business assets etc.). The first £3,000 of gains per person per year is covered by the annual exempt amount. The gain stacks on top of your other income; your salary or profit fills the basic rate band first.
- Annual exempt amount (AEA): £3,000 per person (£1,500 for most trusts). Only gains above this are taxable.
- Basic-rate CGT: 18% on gains within your remaining basic-rate band.
- Higher-rate CGT: 24% on gains above the basic-rate band.
- Both residential property and most other assets (shares, crypto) now use the same 18%/24% rates — the 10%/20% distinction for non-property assets was removed.
- Your main home is usually fully exempt under Private Residence Relief.
- Residential property disposals must be reported within 60 days of completion via the HMRC CGT on UK property service.
- You can offset allowable losses (from other disposals in the same year, or brought forward) against gains.
2026/27 CGT rates
| Asset type | Basic-rate taxpayer | Higher/additional-rate taxpayer |
|---|---|---|
| Residential property | 18% | 24% |
| Other assets (shares, crypto, business assets) | 18% | 24% |
| Annual exempt amount | £3,000 (tax-free) | |
Worked example — £50,000 property gain, £30,000 other income
| Step | Amount |
|---|---|
| Gain on property sale | £50,000 |
| Annual exempt amount | −£3,000 |
| Taxable gain | £47,000 |
| Remaining basic-rate band (£50,270 − £30,000 income − £12,570 PA = £7,700) | £7,700 at 18% = £1,386 |
| Higher-rate slice (£47,000 − £7,700 = £39,300) | £39,300 at 24% = £9,432 |
| CGT payable | £10,818 |
What costs can I deduct from a gain?
You can deduct: the original purchase price and associated buying costs (solicitor fees, SDLT); improvement costs (capital expenditure only, not repairs); and selling costs (estate agent, solicitor, advertising). You cannot deduct mortgage interest or running costs — those are not capital improvements. Always keep receipts: HMRC may ask for evidence.
Frequently asked questions
Is my main home exempt from Capital Gains Tax?
Usually yes, under Private Residence Relief (PRR). Your only or main home qualifies in full if you have lived there throughout. The final 9 months of ownership always qualify for PRR even if you have moved out. Partial relief applies if you rented the property out or used part of it exclusively for business.
When do I have to report a residential property gain?
Within 60 days of completion of the sale, via HMRC's Capital Gains Tax on UK property service. Tax is also due within 60 days. Missing this deadline triggers a late-filing penalty — the rules differ from the Self Assessment deadline.
Can spouses or civil partners share the exempt amount?
Each individual gets their own £3,000 AEA. Transfers between spouses/civil partners living together are CGT-free (at the original base cost), so assets can be moved to use a partner's unused AEA before selling.