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UK Capital Gains Tax in 2026: Surviving the Bigger Bite

The October 2024 rate hike and £3k annual allowance have changed how UK investors should structure their gains. Practical workarounds that are still legal and effective.

6 minTax🇬🇧UK · Tax Year 2026/27By Vitthub Editorial

On 30 October 2024, Rachel Reeves raised UK CGT from 10/20% (shares) and 18/28% (residential property) to a flat 18/24% across all asset classes. Combined with a £3,000 annual allowance (down from £12,300 in 2022-23), the tax cost has roughly doubled for most investors.

What still works

ISAs are untouched. All gains inside an ISA remain CGT-free. If your £20k ISA allowance isn't fully used, use it.

Spousal transfer before selling. Gifting to a spouse is tax-free and doubles your annual allowances (£6,000 combined). Both partners then use their own basic-rate bands.

Loss harvesting. Realise losses in the same tax year as gains to offset them. Unused losses carry forward indefinitely.

Crystallise the £3k every April. Each tax year's allowance is use-it-or-lose-it. Disciplined annual harvesting prevents a lump-sum tax bomb later.

What no longer works as well

Holding property longer for lower rate. Pre-Oct 2024, there was a gap between shares (10%) and property (18%). No longer — both are 18/24%.

Self-employed using Business Asset Disposal Relief (BADR). Rate rising from 10% to 14% in April 2025, then 18% in April 2026. Shrinking discount.

Calculate your exposure

Use our UK Capital Gains Calculator to see the tax on your specific sale, factoring in your income band and allowance.

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