Capital Gains Tax (CGT) is charged on the profit you make when you sell or dispose of shares, funds and most other investments that have risen in value. For 2026, gains above your annual tax-free allowance are taxed at 18 percent if you are a basic-rate taxpayer and 24 percent once your gains push you into the higher-rate band. This guide explains how the tax is calculated on shares and other assets, what is exempt, and how to report and pay.
Capital Gains Tax on Shares Estimator
Enter your total gain for the year and your tax band to estimate the CGT due after the 3,000 pound allowance.
When You Pay Capital Gains Tax on Shares
You pay CGT when you dispose of an asset that has gone up in value, and disposal means more than just selling for cash. It includes giving shares away (other than to a spouse, civil partner or charity), swapping them for other assets, or receiving compensation such as an insurance payout. The tax is on the gain, not the total amount you receive: if you buy shares for 5,000 pounds and sell them for 8,000 pounds, the gain is 3,000 pounds.
CGT applies to shares that are not held in a tax-free wrapper, units in funds, most cryptoassets, and other personal possessions worth more than 6,000 pounds. It does not usually apply to your only or main home, your car, or anything held inside an ISA or pension. Because ISA and pension gains are completely free of CGT, using your annual ISA allowance is the simplest way most people avoid the tax altogether.
Capital Gains Tax Rates for 2026
The rate you pay depends on your total taxable income in the same tax year, because your gains sit on top of your income. For shares and other chargeable assets that are not residential property, basic-rate taxpayers pay 18 percent and higher or additional-rate taxpayers pay 24 percent. These rates were aligned with the residential property rates at the Budget on 30 October 2024, so a single set of rates now applies across shares and property.
To work out which rate applies, add your taxable gain (after the allowance) to your taxable income. Any part of the gain that falls within your remaining basic-rate band is taxed at 18 percent, and anything above it at 24 percent. This means a basic-rate taxpayer with a large gain can pay both rates on different slices of the same gain.
| Taxpayer band | Rate on gains |
|---|---|
| Basic rate (within the basic Income Tax band) | 18% |
| Higher or additional rate | 24% |
| Residential property (for comparison) | 18% / 24% |
Your Annual Tax-Free Allowance
Every individual has a CGT annual exempt amount, and for 2026 it is 3,000 pounds. You only pay tax on gains above this figure in a tax year, and the allowance cannot be carried forward to a later year, so an unused allowance is simply lost on 5 April. Trusts get a lower allowance of 1,500 pounds.
The allowance has fallen sharply in recent years, from 12,300 pounds in 2022 to 6,000 pounds in 2023 and then 3,000 pounds, so many ordinary investors who never used to pay CGT now do. Married couples and civil partners each have their own allowance, and transfers between them are tax-free, so moving assets into joint names before a sale can double the exempt amount to 6,000 pounds and use both partners' rate bands.
How to Calculate Your Gain
Start with the amount you sold the shares for, then deduct what you originally paid, plus certain costs such as stockbroker fees and Stamp Duty Reserve Tax paid on purchase. The result is your gain. You can also deduct allowable losses from disposals of other assets in the same year, which is why it can make sense to sell a losing holding in the same year as a winning one.
For shares of the same class in the same company, you cannot simply match a sale to one specific purchase. HMRC requires you to pool them into a Section 104 holding and use the average cost, unless the shares were bought on the same day as the sale or within the following 30 days. This 30-day rule stops the old bed-and-breakfasting trick of selling and rebuying the next day purely to use the allowance.
Losses, Crypto and Other Assets
If your disposals produce a net loss for the year, you do not pay CGT, and you can carry the loss forward to set against future gains as long as you report it to HMRC, generally within four years. Reporting losses in a poor year is worth doing even if you owe nothing now, because the loss can shelter a large gain later.
Cryptoassets are treated as chargeable assets, so selling, swapping one coin for another, or spending crypto can all trigger a gain. The same pooling and 30-day rules apply. Personal possessions such as jewellery or art are chargeable only if they sell for more than 6,000 pounds, and there are special rules for sets.
How to Report and Pay
For shares and most assets other than property, you report gains through Self Assessment by 31 January after the end of the tax year, and pay by the same date. If you do not already complete a tax return, you can use HMRC's real-time Capital Gains Tax service to report a gain straight away and get a payment reference.
The rules are stricter for UK residential property, where a separate return and payment are due within 60 days of completion. If you sell both shares and a property, the deadlines are different, so treat them separately. Keep records of purchase contracts, contract notes and fees for at least a year after the Self Assessment deadline, or longer if you are a business.
Frequently Asked Questions
Do I pay Capital Gains Tax on shares in an ISA? No. Shares and funds held inside a Stocks and Shares ISA are completely free of Capital Gains Tax, no matter how much they grow, and you do not have to report them. This is why using your annual ISA allowance is the most effective way to avoid CGT on investments.
How much can I make in shares before paying CGT in 2026? You can make gains of up to 3,000 pounds across all your chargeable assets in a tax year before any Capital Gains Tax is due. Gains above 3,000 pounds are taxed at 18 percent or 24 percent depending on your income.
What is the CGT rate on shares for 2026? Basic-rate taxpayers pay 18 percent on gains from shares and higher or additional-rate taxpayers pay 24 percent. Your gain is added to your income to decide which rate applies, so part of a large gain can be taxed at each rate.
Can I offset share losses against gains? Yes. Losses on shares and other chargeable assets reduce your total gains for the year, and any unused loss can be carried forward to future years if you report it to HMRC, usually within four years of the tax year in which the loss arose.
Do I pay CGT when I transfer shares to my spouse? No. Transfers between spouses or civil partners who live together are made on a no gain, no loss basis, so no CGT is due at the point of transfer. Your partner takes on your original cost, which lets couples use two allowances and both rate bands on a later sale.
Does the 30-day rule still apply to shares? Yes. If you sell shares and buy back shares of the same class in the same company within 30 days, they are matched to each other rather than to your Section 104 pool, which prevents selling and rebuying purely to crystallise a gain within your allowance.
How do I report Capital Gains Tax on shares? Report share gains through Self Assessment by 31 January after the tax year ends, or use HMRC's real-time Capital Gains Tax service if you do not file a return. UK residential property is different and must be reported and paid within 60 days of completion.
Related Calculators
Capital Gains Tax Calculator | Capital Gains Tax Property Guide | Capital Gains Tax Property Calculator | Isa Calculator | Shares Calculator
Related Guides
Stamp Duty Rates Guide | VAT Guide UK | Business Rates Guide
Official Sources
Figures are based on 2026/27 published UK government rates. This guide is general information only and not financial advice. Last checked September 2026.
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