Capital Gains Tax has tightened sharply over the last few years. The annual exemption has been cut to a fraction of what it was, and more disposals than ever now trigger a tax bill. This guide focuses on CGT for non-property assets — shares, cryptocurrency, business assets and personal possessions — where the rules are very different from residential property.
Quick answer: UK CGT on shares, crypto and business assets in 2026/27 is 18% (basic rate band) or 24% (higher/additional rate band). The annual exempt amount is £3,000 per person. Business Asset Disposal Relief (BADR) gives a special 14% rate on lifetime gains up to £1m (rising to 18% from April 2026) for qualifying business owners.
Property CGT (PRR, lettings relief, 60-day reporting) is covered separately — see CGT on Property Disposals 2026/27. This guide is for everything else.
2026/27 CGT rates and allowances
| Asset / situation | Basic rate band | Higher/additional rate band |
|---|---|---|
| Shares (listed and unlisted) | 18% | 24% |
| Cryptocurrency | 18% | 24% |
| Business assets (general) | 18% | 24% |
| Other chargeable assets | 18% | 24% |
| BADR-qualifying disposal | 14% (up to £1m lifetime), rising to 18% from 6 April 2026 | |
| Annual exempt amount (individual) | £3,000 | |
| Annual exempt amount (most trusts) | £1,500 | |
The £3,000 annual exemption is dramatically lower than the £12,300 it was in 2022/23. Many small disposals that previously fell entirely within the exemption now produce a CGT liability.
How CGT is calculated
- Disposal proceeds (sale price, less selling costs)
- Less: base cost (purchase price plus buying costs)
- Less: allowable enhancement expenditure (where it adds to the asset’s value)
- = Chargeable gain
- Less: any reliefs (BADR, gift hold-over, etc.)
- Less: annual exempt amount (£3,000)
- = Taxable gain
- Apply 18% or 24% based on whether the gain falls in basic or higher rate band
CGT on shares — the matching rules matter
If you’ve ever bought the same share at multiple price points and then sold some, the calculation isn’t as simple as “what did I pay vs what did I sell for”. HMRC has specific share matching rules to determine which acquisitions are matched against your disposal.
The matching order (in order of priority)
- Same-day rule: shares acquired on the same day as the disposal are matched first
- 30-day “bed and breakfasting” rule: shares acquired within 30 days after the disposal are matched next (anti-avoidance — prevents you from selling and immediately buying back to crystallise a loss)
- Section 104 pool: all remaining acquisitions are pooled at average cost
Worked example: Section 104 pool
James bought:
- 1,000 shares of Company X in March 2018 at £5.00 each (£5,000 total)
- 500 shares in November 2020 at £7.00 each (£3,500 total)
- 800 shares in July 2023 at £4.00 each (£3,200 total)
Total Section 104 pool: 2,300 shares at total cost £11,700. Average cost per share = £5.087.
James sells 1,200 shares in October 2026 at £8.50 each (£10,200). The CGT calculation:
| Calculation | Amount |
|---|---|
| Sale proceeds | £10,200 |
| Less base cost (1,200 × £5.087) | (£6,104) |
| Chargeable gain | £4,096 |
| Less AEA | (£3,000) |
| Taxable gain | £1,096 |
| CGT at 24% (higher rate) | £263 |
The remaining 1,100 shares stay in the pool with a total cost of £5,596 (£11,700 – £6,104).
CGT on cryptocurrency — every disposal counts
HMRC treats most cryptocurrency holdings (Bitcoin, Ether, most altcoins) as chargeable assets for CGT purposes. This is different from how some taxpayers think it works — crypto isn’t like cash and isn’t tax-free just because it’s held in a wallet.
What counts as a “disposal” of crypto
Each of these is a separate CGT event:
- Selling crypto for fiat (e.g., Bitcoin to GBP)
- Swapping one cryptocurrency for another (e.g., ETH to SOL)
- Using crypto to buy goods or services
- Gifting crypto (except to a spouse — that’s CGT-neutral)
- Most DeFi interactions involving deposit/withdrawal of tokens
Each disposal needs its own gain calculation, with the base cost determined by the share matching rules (which apply to crypto as if it were shares — same-day, then 30-day, then pool).
The trap most crypto investors fall into
Active traders who swap between coins frequently can rack up hundreds of CGT events per year without ever touching fiat currency. Each swap is a disposal of one asset and acquisition of another. HMRC’s view is that this is taxable in real time, with the GBP value at the moment of swap being the disposal proceeds.
The reconstruction work to calculate this properly across multiple exchanges, wallets and DeFi protocols can be substantial. It’s one of the most common reasons crypto investors come to us for help — having years of unreported disposals to bring up to date.
Trading vs investing — a critical distinction
If your crypto activity has the hallmarks of a trade (very high frequency, organised systematic approach, intent to profit from short-term price movements rather than long-term appreciation), HMRC may classify it as miscellaneous or trading income — taxed at income tax rates (20–47% combined with NIC) rather than CGT rates (18–24%).
The bar for trading status is high — most retail crypto investors will be on the CGT side. But high-frequency proprietary traders should consider this carefully. Crypto tax classification is one of our specialism areas.
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Business Asset Disposal Relief (BADR) — the 14% rate
BADR (formerly Entrepreneurs’ Relief) is a critical relief for owner-managed business owners. It reduces the CGT rate on qualifying disposals to 14% in 2025/26, rising to 18% from 6 April 2026, on lifetime gains up to £1 million.
Conditions for BADR (sale of company shares)
- You must have been a director or employee of the company throughout the 2-year qualifying period before sale
- You must have held at least 5% of the ordinary share capital and voting rights for 2+ years
- You must have been entitled to at least 5% of the distributable profits and assets on a winding-up for 2+ years
- The company must be a trading company (or holding company of a trading group) throughout the 2-year period
Worked example: company sale
Maria sold her company shares in October 2026 for £800,000. She had founded the company, owned 100% of the shares for 8 years, and was the sole director. Her base cost was minimal (£100). She has not previously used any of her £1m BADR lifetime allowance.
| Calculation | Amount |
|---|---|
| Sale proceeds | £800,000 |
| Less base cost | (£100) |
| Chargeable gain | £799,900 |
| Less AEA | (£3,000) |
| Taxable gain (all within £1m BADR allowance) | £796,900 |
| CGT at BADR rate of 18% | £143,442 |
Without BADR, the same disposal at 24% would have triggered £191,256 in CGT — a saving of £47,814 from the relief.
Important changes to BADR
The BADR rate has been steadily increasing. It was 10% historically, rose to 14% from 6 April 2025, and rises again to 18% from 6 April 2026. The lifetime limit has also been cut substantially — it was £10m before the March 2020 Budget reduced it to £1m. Future Budgets may reduce or restrict the relief further.
The 60-day rule does NOT apply
Unlike UK residential property, disposals of shares, crypto and most other assets are reported in your normal Self Assessment return after the tax year ends (31 January following). There’s no 60-day reporting requirement for non-property disposals.
However, you do need to report your gains via Self Assessment if:
- Your total proceeds exceeded £50,000 (the reporting threshold), OR
- Your total gains exceeded the £3,000 annual exempt amount, OR
- You have losses you want to carry forward to future years
Spouse transfers — the most powerful CGT planning tool
Transfers of assets between spouses or civil partners are CGT-neutral — no gain arises on the transfer, and the receiving spouse takes over the original base cost. This means you can:
- Use both £3,000 annual exemptions (combined £6,000)
- Use the lower-rate spouse’s basic rate band for the 18% rather than 24% rate
Worked example: spouse-shifted disposal
James (additional rate) plans to sell shares for a £30,000 gain. If he sells alone:
- Gain £30,000 less £3,000 AEA = £27,000 taxable
- CGT at 24% = £6,480
Instead, James transfers 50% of the shares to Sarah (basic rate, with £15,000 of unused basic rate band) before sale. Each spouse then disposes:
- James: £15,000 less £3,000 AEA = £12,000 taxable at 24% = £2,880
- Sarah: £15,000 less £3,000 AEA = £12,000 taxable. £15,000 of basic rate band available, so first £12,000 at 18% = £2,160
- Combined CGT = £5,040
Saving: £1,440 just from using both exemptions and Sarah’s basic rate band. The transfer needs to be a genuine outright transfer (not just a tax arrangement), but it’s a routine and entirely legitimate strategy.
Five practical CGT planning strategies
- Use both spouses’ annual exemptions. The £3,000 AEA is per person — and inter-spousal transfers are CGT-neutral. Where one spouse owns assets that will trigger gains, transferring 50% before disposal doubles the AEA.
- Spread disposals across tax years. If selling multiple assets, completing some before 5 April and some after gives you two AEAs and may keep gains in lower rate bands.
- Crystallise losses. If you have unrealised losses on other investments, selling them in the same tax year offsets the gains. Losses can be carried forward indefinitely once registered with HMRC.
- Use ISA wrappers for ongoing investments. Future gains on assets held within an ISA are completely CGT-free. £20,000 per adult per year of “Bed and ISA” transactions can shift assets into the wrapper.
- Use the EIS/SEIS hold-over option. If you have a substantial gain from a non-EIS asset, reinvesting in qualifying EIS or SEIS shares can defer (EIS) or partially exempt (SEIS) the gain. Specialist advice essential.
👉 Related: For property-specific CGT (residential disposals, PRR, lettings relief, 60-day reporting), see CGT on Property Disposals 2026/27. For the bigger picture of how CGT fits with everything else, see our pillar: How Much Tax Do I Pay in the UK? 2026/27.
Frequently asked questions
What is the UK CGT rate on shares in 2026/27?
CGT on shares (and other non-residential assets) is 18% for gains within your basic rate band and 24% for gains in your higher or additional rate band. The annual exempt amount is £3,000. The same rates apply to crypto, business assets and other personal possessions over £6,000.
How is crypto taxed in the UK?
HMRC treats most cryptocurrency as a “chargeable asset” subject to Capital Gains Tax on disposal. Each disposal — selling, swapping one coin for another, using crypto to pay for goods, or gifting (other than to a spouse) — is potentially a CGT event. Trading at a high frequency or as a business may instead be classed as miscellaneous or trading income, taxed at income tax rates.
How does Business Asset Disposal Relief work in 2026/27?
BADR allows qualifying business owners to pay 14% CGT on lifetime gains up to £1m (rising to 18% from 6 April 2026). Conditions include holding at least 5% of the company shares for 2+ years and being an officer or employee. The relief is critical for owner-managers selling their business and worth significant tax savings — the rate is below the 24% standard higher-rate CGT.
Do I need to report every share disposal?
You must report disposals to HMRC if total proceeds exceed £50,000 in a tax year, or if you have a chargeable gain above the £3,000 annual exemption, or if you have losses to claim. Even if no tax is due, reporting losses is important to carry them forward against future gains.
How does the Section 104 pool work for shares?
When you hold multiple lots of the same share bought at different prices, HMRC’s matching rules pool them into a Section 104 holding. The base cost is the average — so when you sell, the gain is calculated using the pooled average cost rather than first-in-first-out. Special rules apply for shares bought within 30 days before or after a sale (the bed-and-breakfast anti-avoidance rule).
Can I use my spouse’s CGT allowance?
Yes. Transfers between spouses or civil partners are CGT-neutral — no chargeable gain arises on the transfer. By transferring assets to your spouse before disposal, you can use both annual exempt amounts (£6,000 combined) and potentially their lower-rate band if they’re a basic-rate taxpayer. This is one of the most effective CGT planning techniques.
📚 Related reading
- Employee Share Schemes 2026/27 — EMI options can convert from CGT to income tax depending on the holding period and exercise terms — important for share-scheme employees.
- Group Structures: 2026/27 Tax Benefits — Disposing of qualifying group company shares can qualify for SSE — different rules from BADR.
🔗 Related reading
- Your CGT rate depends on your income tax band — see income tax rates & allowances for 2026/27.
- If you also take dividends, read the 2026/27 dividend tax guide for directors.