Capital gains tax rates 2026/27 — what business owners pay when they sell

Thinking of selling your business this tax year? Capital gains tax (CGT) is likely to be one of the biggest costs of your exit, so it pays to know the 2026/27 rates before you agree a price. Here is a plain-English roundup, with every figure checked against GOV.UK.

The main rates for individuals. For 2026/27, individuals pay 18% on gains that fall within the basic rate band and 24% on gains above it (GOV.UK: Capital Gains Tax rates and allowances). These are the rates for most business assets — shares, goodwill and equipment — and they now apply to residential property gains as well.

Residential property. Since the rates were aligned, gains on UK residential property — for example a flat held outside your company — are also taxed at 18% and 24% in 2026/27. But property carries a separate deadline: if you sell UK residential property you must report the disposal and pay the CGT due within 60 days of completion. Do not wait for your Self Assessment return (GOV.UK: Report and pay your Capital Gains Tax).

Business Asset Disposal Relief. This is the big one for owner-managers. BADR cuts the rate to 18% on qualifying lifetime gains — for example selling shares in your trading company where you have held at least 5% for two years (GOV.UK: Business Asset Disposal Relief). The rate has risen over time — 10% historically, 14% in 2025/26 — and now stands at 18% for disposals from 6 April 2026. Check the qualifying conditions well before you sign anything.

The annual exempt amount. For 2026/27 the annual exempt amount is £3,000 per individual (GOV.UK) — only gains above that are taxable. Spouses and civil partners each get their own allowance, which is worth remembering if assets can legitimately be transferred between you before sale.

Practical checklist if you are planning a sale:

• Check BADR eligibility early — shareholding percentage, two-year holding period and trading-company status.
• Get a valuation and establish your base cost: what you paid, plus allowable costs.
• Time completion carefully: a deal straddling 5 April can split gains across tax years, using two annual exempt amounts.
• Use losses first — capital losses can be offset against gains, so dig out any unrelieved losses.
• If property is involved, diary the 60-day reporting deadline from the completion date.
• Take advice before heads of terms: a share sale and an asset sale are taxed completely differently.

Rates change, so always re-check GOV.UK before acting. But planning early is what turns a good sale price into a good after-tax outcome.