What are the 2026/27 CGT rates for residential property?

Residential property gains (such as buy-to-let investments, second homes, and inherited homes not covered by Private Residence Relief) are taxed at 18% for basic rate taxpayers and 24% for higher or additional rate taxpayers. The 24% top rate was introduced under the Finance Act 2024 (reducing the previous 28% rate) to encourage property disposals.

How are cryptocurrency, shares, and investment gains taxed?

Disposals of crypto assets (such as Bitcoin, Ethereum, and stablecoins), listed shares, and collective investment funds are subject to CGT rates of 10% for basic rate taxpayers and 20% for higher or additional rate taxpayers. Gains must be calculated using HMRC's 'Share Pooling' rules under Section 104 TCGA 1992, adhering to Same-Day and 30-Day 'Bed and Breakfasting' matching rules.

What is HMRC's 60-day property reporting rule?

Under Schedule 2 to the Finance Act 2019, UK residents who dispose of an interest in UK residential property resulting in a CGT liability must calculate, report, and pay the tax to HM Revenue & Customs within 60 calendar days of the completion date. Submissions are made online via the Capital Gains Tax on UK property service. Failure to report within 60 days triggers an automatic £100 late filing penalty plus daily statutory interest.

How does Private Residence Relief (PRR) protect my home?

Under Section 222 of TCGA 1992, Private Residence Relief (PRR) provides 100% relief from Capital Gains Tax on the sale of a property that has been your only or main home throughout your entire period of ownership. The relief also covers the final 9 months of ownership regardless of whether you resided in the property during that time.

Can I transfer assets to my spouse or civil partner tax-free?

Yes. Under Section 58 of TCGA 1992, transfers of chargeable assets between spouses or civil partners living together take place on a 'no gain, no loss' basis. No Capital Gains Tax is triggered on the inter-spousal transfer, and the receiving partner inherits the original base acquisition cost. This allows married couples to utilise two £3,000 annual exemptions and leverage the unused basic rate tax band of a lower-earning spouse prior to sale.

Which expenses can I deduct from my gross disposal proceeds?

Allowable deductions under Section 38 TCGA 1992 include acquisition costs (original purchase price, Stamp Duty Land Tax / LBTT / LTT, surveyor fees, and legal conveyancing costs), capital improvement expenditures that enhance the property's value (such as building an extension or adding a loft conversion, but excluding routine repairs and redecorating), and incidental costs of disposal (estate agent commissions, solicitor fees, and advertising costs).

What happens if I sell an asset at a capital loss?

If allowable acquisition and disposal deductions exceed your sale proceeds, you generate an allowable capital loss under Section 16 TCGA 1992. You owe £0 CGT. You must formally report the loss on your HMRC Self-Assessment tax return (Capital Gains Summary SA108) within 4 years of the end of the tax year of disposal to register it. Once registered, losses can be carried forward indefinitely to offset future taxable capital gains.

Statutory 2026/27 CGT Engine (TCGA 1992)

Capital Gains Tax Calculator UK

Calculate UK Capital Gains Tax on residential property (18% / 24%), shares and cryptocurrency (10% / 20%), or business disposals. Includes the £3,000 Annual Exemption and 60-day property reporting deadlines.

By AfterTaxUK Editorial TeamTCGA 1992 & Finance Act 202460-Day Residential Rule

Example Scenarios:

TCGA 1992 Statutory Calculation Engine (2026/27)

Disposal Asset & Ownership Details

Annual Exemption: £3,000.00

Asset Ownership Status

Joint ownership between married spouses or civil partners pools two £3,000 exemptions (s.58 TCGA 1992).

Your Annual Taxable Income (£/year)Basic Rate Taxpayer

Salary, pension, dividends or rental profits. Unused basic band remaining: £8,270.00.

Proceeds & Allowable Statutory Deductions

Gross Disposal Proceeds (£)

Gross sale price or open market value if gifted.

Acquisition / Purchase Price (£)

Original purchase cost or probate value at inheritance.

Purchase Costs & SDLT (£)

Stamp Duty (SDLT), solicitor fees, surveyor, broker.

Capital Improvements (£)

Extensions, structural works. Excludes redecorating/repairs.

Disposal & Selling Fees (£)

Estate agency fees, conveyancing, exchange/gas/gas safeties.

Statutory 60-Day HMRC Property Reporting Deadline (Schedule 2 Finance Act 2019)You must report this UK residential property disposal and pay your estimated £20,383.80 CGT liability within 60 calendar days of the completion dateusing HMRC's Capital Gains Tax on UK property service. Late filings incur an automatic £100 penalty plus daily statutory interest.

Total HMRC Capital Gains Tax Liability

£20,383.80

Effective CGT Rate: 22.6% of gross gain

Net Profit After Tax£69,616.20Net cash from disposal: £294,616.20

Gross Capital Gain£90,000.00Proceeds minus allowable costs

Exemption Applied (AEA)-£3,000.00Individual statutory AEA

Net Taxable Gain£87,000.00Subject to CGT assessment

Tax Band SplitBasic & Higher£8,270.00 @ 18% + £78,730.00 @ 24%

Statutory Capital Gains Tax Waterfall

Step-by-step statutory deduction breakdown under the Taxation of Chargeable Gains Act 1992.

2026/27 Rates

1. Gross Disposal Proceeds£320,000.00

Less: Acquisition Cost / Purchase Price-£200,000.00

Less: Allowable Purchase Costs (SDLT, Legal & Survey)-£6,500.00

Less: Allowable Capital Improvements (Structural)-£18,500.00

Less: Incidental Costs of Disposal (Estate Agent & Legal)-£5,000.00

2. Total Gross Capital Gain£90,000.00

Less: Annual Exempt Amount (AEA 2026/27)Sole £3,000

-£3,000.00

3. Net Chargeable Capital Gain£87,000.00

Basic Rate Band (£8,270.00 @ 18%)£1,488.60

Higher / Additional Band (£78,730.00 @ 24%)£18,895.20

Final Capital Gains Tax DuePayable via Self-Assessment SA108 or 60-day property portal

£20,383.80

Author: AfterTaxUK Editorial Team • Tax Year: 2026/27 • Published: 6 April 2026

Statutory Authority: TCGA 1992 Compliant

How UK Capital Gains Tax (CGT) Works in 2026/27

Capital Gains Tax (CGT) is charged on the profit (gain) realised when you sell, gift, exchange, or otherwise dispose of an asset that has increased in value. In the UK, CGT is governed principally by the Taxation of Chargeable Gains Act 1992 (TCGA 1992). It is not assessed on the total amount of money received, but strictly on the net capital gain after deducting allowable acquisition and enhancement expenditure.

Chargeable Asset Class	Basic Rate Taxpayer (Unused Band)	Higher / Additional Rate Taxpayer	Statutory Reference
Residential Property (Buy-to-Let / Second Homes)	18%	24%	Finance Act 2024 s.14
Shares, Crypto, Investments & Other Assets	10%	20%	TCGA 1992 s.4
Business Asset Disposal Relief (BADR)	10%	10% (up to £1m lifetime)	TCGA 1992 s.169H

The £3,000 Annual Exempt Amount (AEA) in 2026/27

Every UK individual possesses an Annual Exempt Amount (AEA) per tax year (6 April to 5 April). For the 2026/27 tax year, the tax-free allowance is set at £3,000 per individual (or £1,500 for most trusts). This represents a marked reduction from previous years (£12,300 in 2022/23 and £6,000 in 2023/24), bringing substantially more casual share traders and property owners into the UK CGT reporting regime.

Spousal Doubling Strategy under Section 58 TCGA 1992

Transfers of chargeable assets between spouses or civil partners living together take place on a "no gain, no loss" statutory basis. By transferring legal or beneficial ownership prior to an exchange of contracts, a couple can combine two individual allowances, shielding £6,000 of capital gain completely tax-free.

Allowable Deductions vs Revenue Repairs

Under Section 38 of TCGA 1992, you can deduct specific incidental acquisition costs, enhancement expenditure, and disposal expenses to lower your net taxable gain. However, HMRC maintains a strict statutory distinction between capital expenditure and regular revenue running expenses:

Allowable Capital Deductions (Deductible)

Stamp Duty (SDLT / LBTT / LTT) paid upon original acquisition.
Conveyancing solicitor fees incurred during purchase and sale.
Surveyor and structural valuation fees incurred during acquisition.
Capital enhancement works: structural extensions, loft conversions, adding off-street parking, or installing a new central heating system where none previously existed.
Estate agency fees and advertising costs incurred to execute the disposal.
Cryptocurrency trading fees and gas costs directly incurred in transacting the asset.

Revenue Expenses (Non-Deductible for CGT)

Routine maintenance and repairs: painting, decorating, plaster patching, and repairing broken roof tiles (these are revenue expenses deductible against rental profits, not capital costs).
Mortgage interest payments and loan arrangement fees (claimed against rental income under Section 24, not CGT).
Council tax, utility bills, and ground rent paid during periods the property was vacant or let.
Landlord insurance premiums and routine boiler service contracts.
Personal travel costs incurred inspecting the asset.

The 60-Day UK Residential Property Reporting Rule

If you are a UK resident disposing of an interest in UK residential property (such as a buy-to-let property, second home, or holiday cottage) that incurs a CGT liability, you cannot wait for your annual Self-Assessment tax return.

Statutory Rule under Schedule 2 to the Finance Act 2019:

You must calculate your estimated gain, file a standalone return via HMRC's online Capital Gains Tax on UK property service, and pay the tax due within 60 calendar days of the completion date.

Late reporting triggers an immediate £100 fixed penalty. If the return remains unsubmitted after 3 months, an additional £10 per day penalty applies (up to £900), followed by higher percentages of the tax owed at 6 and 12 months, in addition to daily statutory interest.

Cryptocurrency & Shares: HMRC Bed & Breakfasting Rules

Unlike physical property, shares and crypto tokens are fungible. When you sell a portion of a holding, you cannot simply choose to sell the specific tokens you acquired at the highest price. Under Section 104 of TCGA 1992, HMRC applies strict share matching rules in the following order:

Same-Day Rule: Disposals are matched first against acquisitions of tokens or shares of the same class made on the same calendar day.
30-Day Rule ("Bed and Breakfasting"): Disposals are matched against acquisitions made within the 30 calendar days following the disposal date. This prevents investors from crystallising artificial tax losses before promptly repurchasing the same asset.
Section 104 Holding (Pooled Average Cost): Any remaining disposals are matched against the pool of all remaining tokens or shares of that class, using the pooled weighted-average acquisition cost.

Explore Connected Tax Calculation Tools

Planning your broader financial strategy? Calculate Bitcoin, Ethereum, and token gains under Section 104 pooling with our dedicated Crypto Tax Calculator, model the ongoing annual tax impact of letting your property with our Section 24 Rental Income Tax Calculator, or compare capital gains against dividend and interest yields using our After-Tax Investment Calculator.

Capital Gains Tax FAQs (2026/27)

Statutory questions and answers on CGT rates, allowances, property reporting, and crypto rules.

For the 2026/27 tax year, the statutory Annual Exempt Amount (AEA) is £3,000 per individual under Section 1K of the Taxation of Chargeable Gains Act 1992 (TCGA 1992). If you own an asset jointly with a spouse or civil partner, you can pool two individual allowances to shelter up to £6,000 of gross capital gains from tax.

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The taxable event matters

A disposal, gift or exchange can create a gain even if you do not withdraw cash. Start with allowable acquisition/disposal costs, losses and the applicable tax-year rules.

Asset-specific reliefs, cryptoasset matching, residence, reporting deadlines and connected-person rules can change the answer. This is not a complete transaction ledger or a return-filing service.

Check the rules for your circumstances

Official guidance supports the rules described here; it does not approve or certify this calculator. Confirm dates, eligibility and unsupported cases before making a financial decision.