Budget 2026: what it means for you and your business —

Tax Advisory & Compliance

Capital Gains Tax Planning

In short

For 2026/27 the capital gains tax annual exempt amount is just £3,000. Gains above the £3,000 annual exempt amount are taxed at 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers — the same rates apply to property, shares and business assets. Gains on UK residential property must be reported and the tax paid within 60 days of completion — separately from your Self Assessment return. Missing that deadline triggers penalties, and it catches out a great many landlords and second-home owners.

The annual exempt amount has fallen sharply in recent years, from £12,300 to £3,000. Disposals that once fell comfortably below the radar are now taxable, and the reporting obligations have tightened at the same time. Planning a disposal properly — its timing, its structure, who owns the asset — is now worth far more than it used to be.

£3,000

Annual exempt amount

2026/27

18% / 24%

CGT rates on property

2026/27

60 days

Deadline to report UK residential property

From completion

How much capital gains tax will I pay?

You pay CGT on gains above the £3,000 annual exempt amount. For residential property, the rates are 18% (basic-rate band) and 24% (higher and additional rate).

Which rate applies depends on where the gain sits when stacked on top of your income — so a gain can straddle both rates. Your main home is normally covered by Private Residence Relief, though that relief can be restricted if the property was let, used for business, or you were absent for periods.

What is the 60-day CGT reporting rule?

If you dispose of UK residential property at a gain, you must report it and pay the estimated tax within 60 days of completion — using a separate CGT on UK Property account, not your Self Assessment return.

This is one of the most frequently missed obligations in the whole tax system. Penalties apply from day 61, and the fact that you will also report the gain on your annual return does not excuse the 60-day filing. If you are selling a rental property or a second home, speak to us before you complete, not after.

How can I reduce a capital gains tax bill?

Timing — spreading disposals across two tax years uses two annual exempt amounts. Spousal transfers — transfers between spouses and civil partners are generally on a no-gain/no-loss basis, so an asset can be moved before sale to use both exemptions and both basic-rate bands. Loss relief — capital losses can be set against gains, and carried forward indefinitely if reported. Reliefs — Private Residence Relief, and Business Asset Disposal Relief on qualifying business disposals. Pension contributions — can extend your basic-rate band and so reduce the rate applying to part of the gain.

Do I pay CGT on shares and crypto?

Yes. Disposals of shares, funds, and cryptoassets are chargeable, subject to the same £3,000 exemption. Crypto is an area of particular HMRC focus — exchanges now report to HMRC, and a “disposal” includes swapping one token for another, not only converting to sterling.

Share identification rules (same-day, 30-day “bed and breakfast”, and the s.104 pool) determine your base cost, and getting them wrong is a common source of error.

Selling a property? Talk to us before you complete

The 60-day reporting clock starts at completion, and the planning options — spousal transfer, timing, loss crystallisation — largely close once contracts are exchanged. A conversation beforehand is worth far more than one afterwards.

Why LMJ Group

We handle the 60-day property return — the deadline most people discover too late.

Planning before the disposal, when the options are still open.

Property, shares, crypto and business disposals — all in one place.

Coordinated with your wider tax position — a gain interacts with your income tax band.

Chartered (ICAEW) advisers, five offices.

Related services

Personal Tax & Self Assessment

Corporation Tax Planning

VAT & Making Tax Digital

Inheritance Tax & Estate Planning

Frequently asked questions

What is the capital gains tax allowance for 2026/27?

The annual exempt amount is £3,000 for individuals — down sharply from £12,300 a few years ago. Gains above that are taxed at 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers on residential property.

How long do I have to report CGT on a property sale?

60 days from completion for UK residential property, with the estimated tax payable at the same time. This is reported separately from your Self Assessment return, through a CGT on UK Property account. Penalties apply from day 61, and this deadline is very widely missed.

Can I transfer an asset to my spouse before selling to save tax?

Often, yes. Transfers between spouses and civil partners are generally made on a no-gain/no-loss basis, so a share of the asset can be transferred before sale to use both annual exemptions and both basic-rate bands. It must be a genuine, outright transfer, and timing matters — take advice first.

Do I pay capital gains tax on cryptocurrency?

Yes. Cryptoassets are chargeable to CGT, and a disposal includes swapping one token for another — not just converting to sterling. Exchanges now report to HMRC, so this is an area of active enquiry. Records of every transaction are essential.

Book a free 30-minute discovery call

Luton · Kettering · Leicester · Guernsey · Welwyn Garden City

Last reviewed: Sep, 2026

This page provides general information about the 2026/27 UK tax year and is not advice on your particular circumstances. Tax and regulatory rules change frequently. Please contact us before acting, or refraining from acting, on anything set out here. LMJ Group is a firm of Chartered Accountants regulated by the ICAEW. LMJ Group is not a registered auditor and does not provide audit services. Last reviewed: July 2026.