What is the Capital Gains Tax annual exempt amount for 2026/27?

The CGT Annual Exempt Amount is £3,000 for 26-27. Capital gains below this threshold are tax-free. This is significantly lower than the income tax Personal Allowance of £12,579.

What rate of Capital Gains Tax do I pay?

CGT rates are 18% for basic rate taxpayers and 24% for higher/additional rate taxpayers (for shares, crypto, and property). Your capital gain is added on top of your income — if the total exceeds £50,270, the excess is taxed at 24%.

Do I pay National Insurance on capital gains?

No. Capital gains are not subject to National Insurance — only income tax (at CGT rates). This is a key difference from employment income, which attracts both income tax (20%/40%) and NI (8%/2%).

Capital Gains Tax vs Income Tax: What's the Difference? (2026/27)

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	Income Tax	Capital Gains Tax
Tax-free amount	£12,579 (Personal Allowance)	£3,000 (Annual Exempt Amount)
Basic rate	20%	18%
Higher rate	40%	24%
Additional rate	45%	24%
National Insurance	Yes (8%/2%)	No
When paid	Deducted monthly via PAYE	Self-Assessment (or 60-day property report)

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