Tax Planning
Capital Gains Tax Overhaul 2026: What Entrepreneurs & Investors Need to Know
With Capital Gains Tax rates rising and reliefs shrinking from April 2026, investors, founders, and business owners need to rethink exit strategies and relief eligibility now.
By NomadicTax Research Team • 5-8 min read • May 10, 2026
## Key tax rate updates from 6 April 2026
- **Basic rate taxpayers** will pay **18%** on gains within the basic rate band; **24%** for gains above it. Trustees & personal representatives are taxed at the higher rate of 24%.
- Gains eligible for **Business Asset Disposal Relief** (BADR) will now be taxed at **18%** — up from lower relief rates before — increasing the cost of qualifying disposals.
- Annual Exempt Amount (the CGT tax-free allowance) reduced to **£3,000** for 2026-27. Everything beyond that is taxable. ([gov.uk](https://www.gov.uk/capital-gains-tax/rates?utm_source=openai))
## Who is impacted most
- **Start-ups or early stage companies** where founders expect to sell their stake or receive share scheme benefits: BADR now carries more cost in exit planning.
- **Investors in private or growth companies**, particularly where share options or share schemes are used.
- **Non-UK residents or trustees** who hold UK-situated assets and expect gains, needing to factor increased rates when disposing of assets.
## Actionable planning strategies
- **Time your disposals carefully**: If possible, complete disposals before 6 April 2026 to benefit from pre-change allowances and reliefs.
- **Consider share options under EMI scheme** (discussed further below) to defer gains and optimise tax outcomes.
- **Use business asset reliefs where possible**, ensuring assets meet qualification tests including ownership period, business activity, and control.
- **Plan with trusts carefully**, especially where assets are held in trust, as trustees’ gains are taxed at 24%.
## Example scenarios
- Sarah (basic rate): Gains £10,000 from sales of assets; taxable income £20,000. After £3,000 allowance, taxed at 18% → tax = £1,260.
- Tom (higher rate): Gains £50,000 with income moderate; first chunk taxed at 18%, remainder at 24%. For gains qualifying for BADR, rate is fixed at 18%.
- Trustee selling an inherited property: taxed at 24% on gains beyond £3,000.
## Conclusion and take-home
The CGT changes effective 6 April 2026 raise rates across the board, particularly for higher earners and trustees. For entrepreneurs and investors, revisiting strategies around share disposals, exit timing, and use of reliefs is now essential.