What are the UK Capital Gains Tax rates for 2026/27?
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From 6 April 2026 the main CGT rates are 18% on gains that fall within your remaining basic-rate band and 24% on gains above it. These rates now apply to both residential property and other assets such as shares. Your income decides how much of the gain is taxed at 18% versus 24%.
What is the Capital Gains Tax allowance for 2026/27?
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The annual exempt amount is £3,000 per individual for 2026/27. You only pay CGT on gains above £3,000 in the tax year, and the calculator applies this automatically before working out the tax.
How much CGT will I pay on a £50,000 gain?
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It depends on your income. A higher-rate taxpayer with a £50,000 gain pays roughly £11,300 — 24% on the £47,000 that remains after the £3,000 allowance. A basic-rate taxpayer with room in their band pays 18% on the part that fits, so enter your income above for an accurate split.
How does my income affect Capital Gains Tax?
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Your taxable income is stacked first and uses up part of the basic-rate band. Whatever is left of that band is available for your gain at 18%; the rest of the gain is taxed at 24%. A higher earner therefore pays 24% on most or all of a gain.
Do I pay Capital Gains Tax when I sell my home?
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Usually not — Private Residence Relief exempts the gain on your only or main home for the period you lived in it. The relief can be restricted if you let the property, used part of it exclusively for business, or the grounds exceed the permitted area, so large or complex homes should be checked.
What is the CGT rate on residential property in 2026/27?
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18% within your remaining basic-rate band and 24% above it — the same as other assets from 6 April 2026. Buy-to-lets and second homes do not qualify for Private Residence Relief, so the whole gain (after the £3,000 allowance) is chargeable.
When do I report and pay Capital Gains Tax?
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For UK residential property you must report and pay within 60 days of completion using a CGT on UK property account. Other gains are reported through Self Assessment by 31 January after the tax year. Missing the 60-day property deadline triggers penalties.
Can I use my spouse's CGT allowance?
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Transfers between spouses and civil partners are made on a no-gain, no-loss basis, so moving an asset (or a share of it) before sale lets a couple use two £3,000 allowances and two sets of basic-rate bands. This is a common, legitimate way to reduce a joint CGT bill.
How do capital losses reduce my CGT?
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Losses in the same year are set against gains before the annual exempt amount, and unused losses can be carried forward indefinitely once claimed. Reporting a loss in the year it arises preserves it, so claim losses even in a year you have no gains to use them against.
Is Business Asset Disposal Relief still available?
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Yes. Qualifying disposals of a trading business or qualifying shares can attract a reduced CGT rate (18% from 6 April 2026) on gains up to the £1 million lifetime limit. The conditions on shareholding, employment and trading status are strict and must be met throughout the qualifying period.
How is a US citizen taxed on a UK capital gain?
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A US citizen is taxed by both countries on the same gain. The UK usually taxes first and the US foreign tax credit can offset the US tax, but the two systems measure the gain, the cost base and the timing differently — and the 3.8% US Net Investment Income Tax cannot be offset by the credit at all.
Does the US recognise my UK main-residence relief?
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Only partially. The US has its own home-sale exclusion (a fixed dollar amount, far smaller than the UK's uncapped relief), so a US person selling a valuable UK main home can face US tax on the gain even when no UK tax is due. This is one of the most expensive cross-border surprises.
Is this CGT calculator suitable for cross-border taxpayers?
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It gives an accurate UK figure, which is the right starting point. But if you are a US person the US side — foreign tax credit ordering, NIIT, currency gains and the home-sale mismatch — can change the real cost significantly. Book a consultation for the full picture.
