United Kingdom: Capital Gains Tax, rates and allowances in 2026-27

For an individual, UK capital gains tax is 18 % or 24 % for gains realized from 6 April 2026 onwards. The annual allowance is £3,000 in 2026-27. The rate depends on your taxable income: for a taxpayer in the basic rate, the portion of the gain that falls within the basic income tax bracket (£37,700) is taxed at 18 %, the remainder at 24 %. A taxpayer in the higher or additional rate pays 24 %.

A non-resident pays this tax on capital gains from UK real estate and land and must declare the sale of a UK residential property within 60 days. This page follows the pages on GOV.UK. It does not cover the lifetime cap on Business Asset Disposal Relief, the Franco-British tax treaty, or the French taxation of the same gains.

The rates

These rates do not include carried interest. From 6 April 2026, GOV.UK classifies this under income tax and social security contributions, not capital gains tax.

Trustees and personal representatives of a deceased person pay 24 % from April 6, 2026.

18 % or 24 %: how the rate is set

A taxpayer at the higher or additional income tax rate pays 24 % on their earnings from 6 April 2026. For a taxpayer at the basic rate, GOV.UK proceeds as follows:

1. You add your earnings, after the allowance, to your taxable income.
2. The portion that remains in the basic income tax bracket is taxed at 18 %.
3. Anything exceeding this bracket is taxed at 24 %.

GOV.UK also specifies that the allowance can be applied to gains that would be taxed at the highest rates.

The basic income bracket used in the GOV.UK examples is £37,700. With taxable income of £20,000 and £12,600 in earnings, £9,600 remains after the allowance: the total of £29,600 is below £37,700, and everything is taxed at 18 %, or £1,728. With £52,600 in earnings, £49,600 remains: £17,700 at 18 % and £31,900 at 24 %, or £10,842.

The annual allowance

(1) GOV.UK column «individuals, personal representatives and trustees for disabled people».

In a year when you claim the Foreign Income and Gains (FIG) scheme or Overseas Workday Relief, you are not entitled to a tax allowance. GOV.UK adds that, for years when the remittance basis could still be claimed (until 2024-25), the allowance is also not granted. Our FIG scheme page provides further details.

What is taxed, what is not

The tax is levied on the profit, not the selling price. A painting bought for £5,000 and sold for £25,000 yields a profit of £20,000.

According to GOV.UK, the following are eligible: shares outside of ISAs or PEPs, property that is not your main residence, most personal assets worth £6,000 or more (excluding cars), and business assets. Gains on ISAs and PEPs, UK government bonds (gilts), and Premium Bonds are exempt.

A British resident pays tax on their British and foreign capital gains.

Business Asset Disposal Relief

Gains that qualify are taxed at 18 % for sales from April 6, 2026. The rate was 14 % from April 6, 2025 to April 5, 2026, and 10 % until April 5, 2025.

For the sale of a business, GOV.UK requires that the seller be a sole trader or business partner and have owned the business for at least two years prior to the sale. For shares, the seller must be an employee or officer of the company, whose primary activity is commercial, for at least two years, and generally hold at least 5,130 shares and voting rights. The lifetime limit is not discussed here; it can be found on GOV.UK.

Non-residents: British real estate

GOV.UK states that a non-resident must declare any sale of UK property or land. Regarding the annual allowance, the page indicates that individuals, including trustees and personal representatives, can claim it once per tax year. Non-resident companies pay corporation tax on capital gains from UK property.

The declaration of any transfer of UK property or land is mandatory, even if no tax is payable. For residential property, the deadline is 60 days after the sale for transactions completed on or after October 27, 2021 (30 days for sales completed between April 6, 2020, and October 26, 2021). The declaration can be made online or using a paper form.

Indirect disposals are also covered: those of an asset that derives 75 % or more of its value from UK real estate, if you hold at least 25 % of it. For funds, the rules may apply even below 25 %.

A non-resident does not have to declare or pay tax on other assets that have increased in value, according to GOV.UK.

Declare your other capital gains

For gains other than those from residential properties, you declare them via Self Assessment in the tax year following the sale. For assets sold in 2025-26 or 2026-27, a real-time service allows you to declare before December 31 of the following tax year and pay before January 31. For example, GOV.UK states that a gain in 2025-26 must be declared before December 31, 2026, and paid before January 31, 2027.

Temporary non-residence

According to the HMRC handbook (RFIG21510), a person returning to the UK after a period of temporary non-residence of five years or less may be taxed on certain income and gains. The conditions are detailed in this handbook. See our page on the Statutory Residence Test.

Capital Gains Tax in the United Kingdom: a numerical example (fictitious profile)

Situation. Sophie, a fictional profile, is a UK resident in 2026-27. Her taxable income is £30,000. She sells shares held outside of an ISA with a gain of £60,000.

Issue. She knows that the rates are 18 % and 24 %. She doesn't know how much of her winnings is taxed at each rate.

Strategy. Deduct the £3,000 allowance, measure the remaining space in the base bracket (£37,700 minus £30,000), apply 18 % then 24 %.

Hypotheses. Sophie is a UK resident year-round, with no application for FIG or Overseas Workday Relief; the £3,000 allowance is available in full; her taxable income of £30,000 is after personal allowance; she has no other gains or losses, and the gain does not qualify for Business Asset Disposal Relief.

Result. The base amount is £57,000. £7,700 remains in the base bracket, taxed at 18% (%): £1,386. The remaining £49,300 is taxed at 24% (%): £11,832. The tax liability is £13,218. Without the allowance, the tax liability would be £13,938: the allowance reduces the tax liability by £720 in this profile.

This profile is fictitious. The calculation does not take into account other rules specific to a real situation.

Capital Gains Tax in the United Kingdom: what changes depending on your situation

• Your taxable income for the year, which determines the remaining place in the basic tax bracket.
• The nature of the gain: shares, real estate, business asset eligible for Business Asset Disposal Relief.
• Your British or non-UK residence, year by year.
• A request from the FIG scheme, which eliminates the allowance for the year.
• The convention between France and the United Kingdom and French taxation, which are not dealt with here.

No results are guaranteed. The rule depends on your situation; check before deciding.