Capital Gains Tax Planner 2026/27

Sale price (or market value if gifted). The gain is proceeds minus cost; tax is charged on the gain after losses and the £3,000 annual exempt amount, not on the proceeds figure itself.

Original purchase price plus enhancement costs (capital improvements) plus disposal-related fees (estate agent, solicitor, stamp duty paid on purchase). A higher cost reduces the chargeable gain pound-for-pound.

From 30 October 2024, residential and other assets share the same 18% basic / 24% higher rates. Business Asset Disposal Relief is 18% on the first £1m of qualifying business sale gains, with the excess reverting to standard rates.

Income tax bands set the CGT rate. The unused portion of your basic-rate band (up to £37,700 above PA) is taxed at 18%; gains stacked above that are taxed at 24%. Higher other income pushes more of the gain into the 24% slice.

Capital losses from earlier years (registered with HMRC) reduce the gain pound-for-pound before the £3,000 annual exempt amount is applied. Any unused balance carries forward indefinitely.

Inter-spouse transfers are CGT-neutral, so transferring half before disposal doubles the £3,000 annual exempt amount used (£3,000 each) and lets each spouse use their own basic-rate band, usually a meaningful saving on larger gains.