---
title: UK Capital Gains Tax Rates Calculator Guide (2026/27)
description: When practitioners build or audit a UK Capital Gains Tax rates calculator, they must follow the strict computational framework established by the Taxation of Chargeable Gains Act 1992 (TCGA 1992). Section 1 of the TCGA 1992 dictates that capital gains…
url: "https://www.accountingfirms.co.uk/knowledge-bank/uk-capital-gains-tax-rates-calculator/"
updated: "2026-08-11"
category: Tax calculators
---

# UK Capital Gains Tax Rates Calculator Guide (2026/27)

When practitioners build or audit a UK Capital Gains Tax rates calculator, they must follow the strict computational framework established by the Taxation of Chargeable Gains Act 1992 (TCGA 1992). Section 1 of the TCGA 1992 dictates that capital gains tax applies to the total amount of chargeable gains accruing to a person in a tax year, but only after deducting allowable losses.

> "Capital gains tax is charged on the total amount of chargeable gains accruing to a person in a tax year after deducting— (a) any allowable losses accruing to the person in the tax year, and (b) so far as not previously deducted under this subsection, any allowable losses accruing to the person in any previous tax year."

A compliant calculator must systematically offset in-year losses first, followed by brought-forward losses, before applying any statutory exemptions or [tax rates](https://www.accountingfirms.co.uk/blog/interesting-dividends/).

## The Annual Exempt Amount (TCGA 1992, s 1K)

Following the deduction of allowable losses, the calculator must apply the [Annual Exempt Amount](https://www.accountingfirms.co.uk/blog/its-that-time-again-year-end-tax-planning/) (AEA). Section 1K of the TCGA 1992 dictates the tax-free allowance that individuals can deduct from their net gains to eliminate or reduce their chargeable amount.

For the 2026/27 [tax year](https://www.accountingfirms.co.uk/blog/good-timing-can-save-a-lot-of-tax/), the AEA remains rigidly fixed at £3,000 for individuals and personal representatives.  For trustees of a settlement, the allowance is strictly limited to £1,500.  The government previously abolished the statutory mechanism that automatically uprated the AEA in line with the Consumer Prices Index (CPI).

## 2026/27 CGT Rates and Thresholds (TCGA 1992, s 1H)

The Finance Act 2025 introduced significant structural changes to section 1H of the TCGA 1992, unifying the historically separate rates for residential property and other assets.  For the 2026/27 tax year, the main rates of [Capital Gains Tax](https://www.accountingfirms.co.uk/blog/selling-the-garden-for-development/) for individuals stand at 18% for the lower rate and 24% for the higher rate.  Personal representatives and trustees pay a flat rate of 24% on all non-exempt chargeable gains.

Crucially, from 6 April 2026, the legislation increases the tax rate for [Business Asset Disposal Relief](https://www.accountingfirms.co.uk/blog/cgt-advantages-of-furnished-holiday-lettings/) (BADR) and Investors' Relief (IR). While the lifetime limit for both reliefs remains capped at £1 million, gains qualifying for BADR or IR will face an 18% tax rate, perfectly aligning them with the main lower [rate of CGT](https://www.accountingfirms.co.uk/blog/badr-the-long-goodbye/).  Furthermore, practitioners must note that carried interest gains, which faced a 32% rate in 2025/26, fall entirely out of the CGT regime from April 2026 and become taxable as trading profits subject to [Income Tax](https://www.accountingfirms.co.uk/blog/hmrc-payment-niers/).

### **Table: UK Capital Gains Tax Rates (2026/27)**

| Asset / Taxpayer Profile | Applicable Rate | Statutory Reference |
| --- | --- | --- |
| **Individuals (Basic Rate Taxpayers)** | 18% | TCGA 1992, s 1H(3) |
| **Individuals (Higher/Additional Rate)** | 24% | TCGA 1992, s 1H(3) |
| **Trustees and Personal Representatives** | 24% | TCGA 1992, s 1H(6), (8) |
| **[Business Asset Disposal Relief](https://www.accountingfirms.co.uk/blog/going-going-almost-gone-what-is-left-of-badr/) (BADR)** | 18% | TCGA 1992, s 169N (from 6 April 2026) |
| **Investors' Relief (IR)** | 18% | TCGA 1992, s 169VC (from 6 April 2026) |

## Calculator Logic: Interacting with Income Tax (TCGA 1992, s 1I)

To correctly apply the 18% and 24% rates, a UK Capital Gains Tax rates calculator must interact with the taxpayer's income tax position. Section 1I of the TCGA 1992 requires practitioners to determine the extent of the individual's unused basic rate band.

For the 2026/27 tax year, the basic rate limit sits at £37,700, and the Personal Allowance stands at £12,570, establishing a higher rate threshold of £50,270.  The calculator must allocate the taxpayer's total income against the basic rate band first. Any remaining capacity within this £37,700 band constitutes the "unused basic rate band."

The calculator then applies the 18% CGT rate to any gains that fall within this unused capacity.  The system must tax any gains exceeding the unused basic rate band at the 24% higher rate.

When a taxpayer realises a mixture of standard gains and gains qualifying for BADR or IR, strict ordering rules apply. The legislation dictates that BADR and IR gains (now taxed at 18% in 2026/27) consume the unused basic rate band in preference to other standard capital gains.  A compliant calculator must allocate the basic rate band to the relief-qualifying gains first, invariably pushing the standard gains into the 24% higher rate bracket if the band becomes fully exhausted.

 

*Next steps for research: Review the specific ordering rules for allocating the £3,000 Annual Exempt Amount between multiple asset disposals to ensure maximum tax efficiency. Additionally, investigate how the permanent shift of carried interest to trading profits impacts the offset of capital losses against those specific distributions from April 2026.*