Tax Planning
Tax Planning in the UK: Navigating the New Capital Gains Tax Rates from April 2026
With the UK government revising capital gains tax (CGT) rates as of 6 April 2026, individuals holding valuable assets must adapt their planning strategies to minimise liabilities and maximise reliefs.
By NomadicTax Research Team • 5-8 min read • July 18, 2026
## Overview of the New CGT Regime
From **6 April 2026**, the UK has adjusted its Capital Gains Tax rates and allowances. Individuals will now pay **18%** on gains within the basic Income Tax band and **24%** on gains exceeding that threshold, replacing previous rates. The tax-free allowance for gains has also been reduced to £3,000. ([gov.uk](https://www.gov.uk/capital-gains-tax/rates?utm_source=openai))
## What Changed
- The tax-free annual allowance (exemption) dropped significantly, inviting earlier taxation on smaller gains. ([gov.uk](https://www.gov.uk/capital-gains-tax/rates?utm_source=openai))
- Gains taxed at **18%** for basic rate taxpayers; **24%** for higher/additional rate taxpayers. ([gov.uk](https://www.gov.uk/capital-gains-tax/rates?utm_source=openai))
- Prior reliefs like Business Asset Disposal Relief continue, but their application must be revisited in light of the rate changes. ([gov.uk](https://www.gov.uk/capital-gains-tax/rates?utm_source=openai))
## Tax Planning Strategies
To adapt, individuals and advisors can consider the following:
### 1. Timing Disposals
Plan asset disposals around **tax year boundaries**. Realising gains in the tax year 2025-26 versus 2026-27 might mean using old allowances or lower rates.
### 2. Use of Losses and Reliefs
Offset gains with any carried-forward losses. Examine eligibility for reliefs such as Business Asset Disposal Relief before deciding disposal strategy.
### 3. Basic Rate Band Considerations
Since gains are taxed by combining them with taxable income, staying within the **basic rate threshold** (<£37,700 taxable income in 2026-27) can lead to substantially lower rates. Splitting income, deferring income, or using pension contributions can help maintain basic rate status.
### 4. Portfolio Structuring and Timing
Consider selling or gifting assets partially each year to better utilise the reduced allowance. Likewise, stagger transactions across tax years or spread gains among family members (where allowable) to reduce tax burdens.
## Examples
- *Example 1:* Jane sells inherited shares in May 2026 for a gain of £10,000; she uses her £3,000 allowance; remaining £7,000 is taxed at 18% if her taxable income keeps her in the basic rate band, resulting in CGT about **£1,260**.
- *Example 2:* Tom with income pushing him into higher rate, realises a gain of £50,000; after £3,000 allowance, he pays 18% on the portion that falls into basic rate, 24% on the rest. Effective CGT can exceed £10,000.
## Actionable Advice
- Review your **asset holdings and potential gains** well before year-end.
- Ensure you **maintain or stay below** higher rate thresholds if possible.
- Document costs accurately—transaction fees, improvements, and base costs—all reduce your taxable gain.
- Consult professional advice if considering business asset reliefs or gifts of business assets.
**Bottom line:** With CGT changes reducing allowances and increasing top rates, early planning, timing, and relief maximisation are paramount to reduce tax exposure in the UK under the 2026-27 regime.