What CGT rates apply to share option gains in 2026?

From October 2024: 18% (basic rate taxpayer), 24% (higher/additional rate taxpayer). Business Asset Disposal Relief applies 10% for EMI options held 2+ years (lifetime limit £1m gains).

What is the Section 104 pool for shares?

Section 104 pools all acquisitions of the same class of shares in one company. Average cost = total cost of pool ÷ total shares. When you sell, the proportion of pool cost relating to shares sold is your allowable cost.

Do I need to calculate CGT per share sold?

For unlisted company shares (like startup options), each disposal is usually a simple calculation. For listed shares, use Section 104 pooling plus the 30-day 'bed and breakfasting' rule.

Can I offset capital losses against share option gains?

Yes. Capital losses in the same tax year must be offset first. Prior year losses can be used selectively to avoid wasting the annual exempt amount.

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

£3,000 (reduced from £12,300 in 2022/23 and £6,000 in 2023/24). This applies per individual per tax year and cannot be carried forward.

Is there CGT on growth shares?

Growth shares are ordinary shares with a low entry value (hurdle). The gain is all CGT — no income tax if structured correctly. BADR may apply if you hold >5% and it qualifies as a business.

What is the CGT payment deadline for shares?

For unlisted shares: within 31 January following the tax year end (Self Assessment). HMRC aims to collect CGT on listed shares within 60 days via online reporting, though most use Self Assessment.

Are share option gains taxed as income or capital gains?

Unapproved options: gain at exercise is employment income (PAYE). Approved options (EMI, CSOP, SAYE, SIP after 5 years): CGT only on sale. Growth shares: CGT if structured correctly.

What is an employment-related securities (ERS) event?

Any transaction involving shares or options as part of employment. Companies must report ERS events annually. Employees may receive income tax charges if options are granted or exercised at below market value without HMRC approval.

What is the CGT annual exempt amount for married couples?

Each spouse/civil partner has their own £3,000 annual exempt amount. You can transfer shares between spouses at no gain/no loss to use both allowances on the same shareholding.

How do I report share option CGT to HMRC?

Complete SA108 Capital Gains Summary (part of Self Assessment return). For gains over £50,000 or total proceeds over £50,000, you must complete SA108 even if no tax is due.

What allowable costs can I deduct from share option gains?

Exercise price paid, any income tax already charged on the option discount (unapproved), stamp duty at exercise, HMRC-approved enhancement expenditure, and cost of acquiring the option itself.

Share Options CGT Calculator

Capital Gains Tax on UK share options — all scheme types

Share Options CGT Calculator

Number of Shares Sold

Sale Price per Share (£)

Allowable Cost per Share (£)

Capital Losses to Offset (£)

CGT Rate

Annual Exempt Amount Used (£)

CGT on Different Share Option Types

EMI options: CGT only. 10% with BADR (2-year hold), otherwise 18%/24%.
CSOP options: CGT only on qualifying exercise. 18%/24%. No BADR.
SAYE/SIP: CGT on sale. Base cost = market value when shares left the plan.
Unapproved options: Income tax at exercise on gain. Subsequent gains: CGT.
Growth shares: CGT from day one if correctly structured with a hurdle price.

Frequently Asked Questions

What CGT rate applies in 2026?

Can I use losses to reduce share option CGT?

What is the Section 104 share pool?