What is the CGT annual exempt amount for shares in 2026/27?

The Capital Gains Tax annual exempt amount (AEA) for individuals in 2026/27 is £3,000. This applies to your total net gains across all assets in the tax year, not per asset. Gains below this threshold are completely tax-free. Married couples and civil partners each have their own £3,000 exemption and can transfer assets between themselves at no gain/no loss, effectively doubling the household exemption to £6,000.

What are the CGT rates on shares in 2026/27?

From 30 October 2024 (Budget), CGT rates on shares and other assets (excluding residential property) are: 18% for basic rate taxpayers and 24% for higher and additional rate taxpayers. Your rate depends on your total taxable income plus gains in the tax year. If your income plus gains straddle the basic/higher rate boundary (£50,270 in 2026/27), the portion in the basic rate band is taxed at 18% and the remainder at 24%.

How does the Section 104 pool work for shares?

The Section 104 (S104) pool treats shares of the same class in the same company as a single asset. When you buy more shares, the total cost and quantity are pooled together. The average cost per share is recalculated each time. When you sell, you use the average pool cost to calculate your gain. The pool grows and shrinks as you buy and sell. Special rules override the pool: same-day acquisitions match first, then acquisitions within the next 30 days (the 30-day rule), and only then the S104 pool.

What is the 30-day bed and breakfasting rule?

If you sell shares and buy the same shares back within 30 days, HMRC's 30-day rule applies. The sale is matched against the repurchase price rather than the S104 pool average cost. This prevents 'bed and breakfasting' — selling to crystallise a gain or loss then immediately repurchasing. The rule applies to disposals and reacquisitions of identical shares within 30 calendar days in either direction. Workarounds include using a bed-and-ISA strategy (repurchase inside an ISA) or buying different but similar shares.

Do I need to report shares gains to HMRC?

You must report capital gains to HMRC via Self Assessment if: your total gains exceed the annual exempt amount (£3,000), your total proceeds exceed four times the AEA (£12,000 in 2026/27), or you made a loss you want to carry forward. You can report gains in real time via the HMRC Capital Gains Tax service without completing a full tax return. The deadline for payment is 31 January following the end of the tax year. For residential property gains, a 60-day report and payment deadline applies — this does not apply to shares.

Are shares held in an ISA subject to CGT?

No. Shares held inside a Stocks and Shares ISA are completely exempt from Capital Gains Tax, regardless of the size of the gain. There is also no income tax on dividends within an ISA. The annual ISA allowance is £20,000 per person for 2026/27. A popular strategy is 'bed and ISA': selling shares outside the ISA and immediately repurchasing inside the ISA wrapper. Because the ISA purchase is not the same legal holding, the 30-day rule does not prevent crystallising a gain (you pay CGT now but future gains are sheltered).

Can I use capital losses to reduce CGT on shares?

Yes. Capital losses from the same tax year are set off against gains before applying the annual exempt amount. If losses exceed gains in a year, the net loss carries forward indefinitely and can be used against future gains. Losses on shares in qualifying EIS companies can be set off against income (not just gains). You must claim losses within 4 years of the end of the tax year in which they arose. Losses on assets given to or sold at undervalue to a connected person can only be set against gains from the same connected person.

CGT on Shares Calculator 2026/27 — Capital Gains Tax UK Shares

Last updated: March 2026

CGT on Shares Calculator 2026/27

Calculate capital gains tax using HMRC share identification rules. The calculator applies the Section 104 pool, same-day rule, and 30-day bed & breakfast rule automatically.

Matching order: Same-day acquisitions → acquisitions in next 30 days (bed & breakfast rule) → S104 pool average cost

Step 1: Disposal Details

Number of Shares Sold

Sale Price Per Share (£)

Date of Sale

Dealing Costs on Sale (£)

Step 2: Purchase History (S104 Pool)

Add all purchases of the same shares. The calculator builds your S104 pool and checks for 30-day rule matches. Enter purchases oldest first.

Date Bought

Shares Bought

Price Per Share (£)

Step 3: Tax Position

Other Taxable Income This Year (£) Used to determine 18% or 24% CGT rate

Capital Losses Carried Forward (£)

Annual Dividend Income From These Shares (£) Optional — calculates dividend income tax separately

CGT Rates on Shares 2026/27

Taxpayer Type	Rate on Shares	Notes
Basic rate taxpayer (income below £50,270)	18%	From 30 October 2024 (increased from 10%)
Higher / additional rate taxpayer	24%	From 30 October 2024 (increased from 20%)
Shares in an ISA	0%	CGT exempt — always
Annual Exempt Amount (AEA)	£3,000	2026/27 (reduced from £12,300 in 2022/23)

Important: Gains on residential property (other than your main home) use different rates — 18% (basic) and 24% (higher). Carried interest and business asset disposal relief have separate rates.

Expert Guide: Capital Gains Tax on UK Shares

1. The Section 104 Pool — How HMRC Matches Your Shares

The S104 pool is a running account of all shares of the same class in the same company held outside an ISA. Each new purchase adds to the pool's total quantity and total cost. The average cost per share is always recalculated. When you sell, you multiply shares sold by the average cost to find your allowable cost for CGT purposes.

Example: You buy 500 shares at £3.00 (total £1,500) then 700 at £4.50 (£3,150). Pool: 1,200 shares, cost £4,650, average £3.875/share. You sell 1,000 shares at £5.50. Proceeds £5,500, allowable cost £3,875, gross gain £1,625 before expenses and AEA.

Bonus issues and rights issues adjust the pool. Share reorganisations, takeovers (paper-for-paper), and demergers have special rules. HMRC's helpsheet HS284 covers the mechanics in full.

2. The 30-Day Bed & Breakfast Rule — Anti-Avoidance

Before 1998, investors would sell shares to crystallise a loss (or use their annual exemption), then repurchase the next day — the original bed and breakfasting strategy. HMRC now requires that if you sell shares and buy the same shares within 30 days, the sale is matched against the repurchase at the repurchase price, not the S104 pool average.

Workarounds: (a) Bed and ISA — sell shares outside, immediately repurchase inside an ISA. Because the ISA holding is legally separate, the 30-day rule does not apply. You crystallise a gain or loss now; future growth is sheltered. (b) Purchase different but economically similar shares immediately (e.g., a different UK equity fund tracking the same index). (c) Wait 31+ days before repurchasing.

3. Same-Day Rule

If you buy and sell shares of the same class on the same day, the rules require the acquisition to be matched against the disposal on that day first, before the 30-day rule or the S104 pool. This prevents crystallising gains or losses by trading intra-day.

In practice, most retail investors will not encounter same-day matching. It is most relevant for active traders, employee share scheme participants who exercise and sell on the same day, and takeover scenarios where consideration includes cash with a same-day reinvestment.

4. Shares in an ISA — No CGT Ever

Gains on shares held inside a Stocks and Shares ISA are completely free of CGT. There is no annual limit on the gains you can make within the ISA — only on the amount you pay in (£20,000 per tax year in 2026/27). Dividends and interest within the ISA are also free of income tax.

ISA transfer strategy: You can transfer ISA funds between providers without affecting your annual allowance. You cannot repay withdrawn cash in a standard ISA (unless it is a flexible ISA). Flexible ISAs allow you to withdraw and repay in the same tax year without using up additional allowance.

5. Enterprise Investment Scheme (EIS) and SEIS

Shares acquired under EIS (Enterprise Investment Scheme) or SEIS (Seed EIS) have special CGT treatment. Gains on EIS shares held for 3+ years are exempt from CGT entirely (not just at 0% — they are outside the scope). Losses on EIS shares can be relieved against income, not just gains, at your marginal rate.

EIS deferral relief allows you to defer a CGT liability by reinvesting proceeds into qualifying EIS shares within 1 year before or 3 years after disposal. SEIS reinvestment relief provides a 50% CGT exemption on gains reinvested in qualifying SEIS shares (from 6 April 2023). These reliefs require the company to hold EIS/SEIS-compliant status at the time of investment.

6. Capital Losses and Carry Forward

If your disposals in a tax year produce a net loss, you carry that forward to set against future gains. Losses from the current year are always offset against current-year gains first (you cannot choose to save them). Carried-forward losses are only used to reduce the gain to the annual exempt amount — you do not have to use more.

Reporting losses: You must claim losses within 4 years of the end of the tax year. Report via Self Assessment. If you are below the reporting threshold (gains under £3,000 and proceeds under £12,000), you may still wish to report losses to register them with HMRC for future use.

7. Record Keeping for Shares

HMRC requires you to keep records for at least 5 years after the 31 January Self Assessment deadline. For shares, you need: contract notes (trade confirmations) for every purchase and sale; dividend reinvestment plan (DRIP) statements; corporate action records (rights issues, bonus shares, takeovers); and any costs of acquisition and disposal (broker commissions, stamp duty).

Stamp Duty Reserve Tax (SDRT) at 0.5% paid on purchases is part of your allowable cost. It is included in the cost shown on broker statements. Some platforms produce annual CGT reports; these can be a useful starting point but always verify against the HMRC matching rules, especially for high-frequency traders.

8. Dividend Income from Shares

Dividends are taxed separately from capital gains. The dividend allowance is £500 in 2026/27. Above the allowance, dividend income is taxed at: 8.75% (basic rate), 33.75% (higher rate), 39.35% (additional rate). Dividends inside an ISA are completely free of income tax.

If your dividend income exceeds £10,000 you must declare it via Self Assessment. Below that threshold, if you are a basic rate taxpayer, you may be able to have it taxed via a change to your tax code. Dividend income does not affect your CGT rate band calculation — only non-dividend income does.

Worked Examples: CGT on Shares 2026/27

Example 1: Basic Rate Taxpayer — Gain Within Annual Exemption

Sarah earns £28,000 salary. She sells 500 shares for £2.00 each (proceeds £1,000). S104 average cost was £1.20/share (cost £600). Dealing costs: £5. Gross gain = £1,000 − £600 − £5 = £395. This is below the £3,000 AEA. CGT = £0. No reporting required unless proceeds exceed £12,000.

Example 2: Higher Rate Taxpayer — Gain Exceeds AEA

James earns £60,000. He sells 1,000 shares for £5.50 (£5,500). S104 average cost £3.875/share (£3,875). Dealing costs £10. Gross gain = £5,500 − £3,875 − £10 = £1,615. Less AEA £3,000: taxable gain = £0 (gain below AEA). CGT = £0.

Example 3: Straddling Basic/Higher Rate Bands

Emma earns £45,000. She has a taxable gain of £12,000 after the AEA. The basic rate band ceiling is £50,270. Remaining band = £50,270 − £45,000 = £5,270. CGT at 18% on £5,270 = £948.60. CGT at 24% on £6,730 = £1,615.20. Total CGT = £2,563.80.

Example 4: 30-Day Rule Triggered

Tom sells 1,000 shares on 10 January 2026 at £6.00 (proceeds £6,000). His S104 average cost was £4.00/share. On 5 February 2026 (26 days later) he buys 1,000 shares at £5.80. 30-day rule applies: the sale is matched against the 5 February purchase at £5.80, not the S104 pool. Gain = £6,000 − £5,800 = £200 (not £2,000). The S104 pool is unaffected. The 800 remaining S104 shares keep their original average cost.

Frequently Asked Questions

The Capital Gains Tax annual exempt amount for individuals in 2026/27 is £3,000. This applies to your total net gains across all assets in the tax year, not per asset. Married couples each have their own £3,000 exemption and can transfer assets between themselves at no gain/no loss.

From 30 October 2024, CGT rates on shares are 18% (basic rate taxpayers) and 24% (higher/additional rate taxpayers). If your income plus gains straddle the basic/higher rate band (£50,270 in 2026/27), the lower portion is taxed at 18% and the balance at 24%.

No. The 30-day bed and breakfast rule only applies to re-acquisitions of the same shares outside an ISA. If you sell shares and immediately buy the same shares inside an ISA, the 30-day rule does not match them. This is the bed-and-ISA strategy — you crystallise gains/losses now and shelter future growth in the ISA.

You are not obliged to report a loss if you are below the reporting threshold. However, you must formally claim losses to use them in future years. Claim via Self Assessment within 4 years of the end of the tax year the loss arose in. Even if you do not file a return, you can write to HMRC to register a loss.

Expert Reviewed — This calculator and guide are reviewed by our team of chartered tax advisers and updated for the 2026/27 tax year rates and HMRC matching rules. Last verified: March 2026.

Official Sources

UK Calculator Editorial Team

Our tax calculators are reviewed by qualified chartered accountants and tax advisers. All tools use official HMRC rates and TCGA 1992 rules. Learn more about our team.

Disclaimer: This calculator provides estimates based on published HMRC CGT rates and TCGA 1992 share identification rules. It is for informational purposes only and does not constitute professional tax advice. Actual liability may differ based on specific circumstances including corporate actions, employee share schemes, relief claims, and residency status. Always consult a qualified tax adviser for your personal position.

Capital Gains Tax on Shares Calculator