Digital Nomad
UK Capital Gains Tax Rates Overhauled for 2026: What You Need as a Digital Nomad or Investor
From April 6, 2026, UK CGT rates and allowances shift significantly—investors, non-domiciled individuals, and digital nomads must adapt to changes on disposal and remittance basis rules.
By NomadicTax Research Team • 6 min read • June 7, 2026
## Background
Starting **6 April 2026**, several UK changes affect how individuals and companies pay **Capital Gains Tax (CGT)** on asset disposals and foreign income or gains—particularly important for **digital nomads**, cross-border workers, and non-domiciled persons. ([gov.uk](https://www.gov.uk/capital-gains-tax/rates?utm_source=openai))
## Key Changes
- **Rates Increase**: For gains from disposals made on or after 6 April 2026, most gains for individuals shift to **18%** (basic rate band) or **24%** (higher/additional rate). ([gov.uk](https://www.gov.uk/capital-gains-tax/rates?utm_source=openai))
- **Business Asset Disposal Relief (formerly Entrepreneurs’ Relief)** now taxed at **18%**, up from 14%, for disposals on or after that date. ([gov.uk](https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg63955?utm_source=openai))
- **Remittance Basis Abolished**: Non-domiciled individuals can no longer opt into claiming the remittance basis. Instead, an “arising basis” tax system applies, meaning foreign income and gains will be taxed when they’re earned, not just when brought to the UK. Also impacts the **Annual Exempt Amount** (AEA) which no longer applies to those claiming—or essentially using—the remittance basis. ([gov.uk](https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg25325?utm_source=openai))
## Scenario Examples
* **Investor Selling Shares**: Jane, a UK resident in higher rate band, disposes shares purchased years ago. Under new rules, the gain (after £3,000 AEA) taxed at 24%, rather than lower prior rates.
* **Digital Nomad / Non-Dom**: Alex works abroad but has remained a non-dom with foreign income. Without the remittance basis, all foreign gains are taxed yearly—even if not repatriated.
* **Entrepreneurial Exit**: Business owner exits sale after 6 April 2026 under Business Asset Disposal Relief; gets 18% rate instead of 14%.
## Planning Strategies
- **Pre-Fiscal Event Disposals**: If possible, dispose of assets or make exit before 6 April 2026 to benefit from lower rates.
- **Shift to Residency Planning**: If you’re nearing residency thresholds, consider timing of becoming UK tax resident or surrendering non-dom status before incoming changes.
- **Use Allowances Early**: Use AEA before abolition/limitations, especially for gains on UK assets when you have foreign income.
- **Structure investments**: Charitable trusts, avoidance plans might need review given new treatment of foreign income/gains.
## Compliance Essentials
- Monitor reporting obligations—early 2025/26 year UK tax return will require reporting for foreign gains even if not remitted.
- File SA108 and relevant CGT schedules correctly. Help-sheets like **HS281** updated for new rules on spousal transfers etc. ([gov.uk](https://www.gov.uk/government/publications/husband-and-wife-civil-partners-divorce-dissolution-and-separation-hs281-self-assessment-helpsheet/hs281-capital-gains-tax-civil-partners-and-spouses-2026?utm_source=openai))
- Recognize that carried interest is now taxed as Income Tax and National Insurance from 6 April 2026. ([gov.uk](https://www.gov.uk/capital-gains-tax/rates?utm_source=openai))
## Actionable Insights
1. **Evaluate whether to dispose of qualifying assets pre-April 6, 2026** to secure favorable rates.
2. **Review your domicile status** and whether you should “shut down” non-dom elections in advance.
3. **Consult UK tax advisers**, especially for cross-border income/gains.
These CGT changes dramatically reshape the landscape for investment exits, foreign income, and cross-border tax planning. For digital nomads, they underscore the urgency to plan residency, investment sales, and timing accordingly.