UK Capital Gains Tax rates for UK residents and non-residents

Working out how much Capital Gains Tax you owe can be complicated, particularly when you live abroad, own assets in different countries or receive income in more than one currency.

At Experts for Expats, we regularly receive enquiries from people selling UK property while living overseas, disposing of investments before or after relocating or trying to understand whether a gain will be taxed in more than one country.

These enquiries often involve more than calculating a percentage of the profit. Your tax residence, income, available allowances, ownership history and exchange rates can all affect the outcome.

In this article, we explain the UK Capital Gains Tax rates for 2026/27 and use illustrative examples based on the types of situations our specialist tax partners regularly help people navigate.

Disclaimer

This article is for general information only and does not constitute tax, legal or financial advice. Tax rules and their application depend on your individual circumstances and may change over time. If you are unsure about your position, you should seek appropriate professional advice.

What are the UK Capital Gains Tax rates for 2026/27?

For the tax year running from 6 April 2026 to 5 April 2027, the main UK Capital Gains Tax rates for individuals are:

These are the principal CGT rates covered in this article, but please be aware that specialist rules can apply to certain transactions and categories of income.

The main 18% and 24% rates apply to chargeable gains from residential property and other assets, including shares held outside an ISA or another tax-exempt wrapper.

Non-UK residents generally pay the same individual CGT rates as UK residents when their gains are subject to UK CGT. The significant difference is which assets fall within the UK tax system.

UK residents are generally subject to UK CGT on chargeable gains from assets in the UK and overseas, although exemptions, reliefs and special residence rules may apply.

Non-UK residents are generally subject to UK CGT on disposals of UK property and land. Certain indirect interests in UK property, such as shares in property-rich companies, can also fall within the rules.

Broadly, the indirect-disposal rules can apply where an entity derives at least 75% of its gross asset value from UK land and the seller has a substantial interest, generally 25% or more, subject to detailed conditions and exceptions.

Other assets, including ordinary UK company shares, are generally outside UK CGT while someone is non-resident, subject to exceptions such as the temporary non-residence rules.

Capital Gains Tax annual exempt amount

For 2026/27, the Capital Gains Tax annual exempt amount (AEA) is £3,000 per eligible individual.

This means that an individual can generally deduct up to £3,000 from their net chargeable gains before calculating the CGT payable, provided they are entitled to the allowance, however, the allowance is not available to everyone.

How does the Foreign Income and Gains regime affect CGT?

Individuals who claim relief under the Foreign Income and Gains (FIG) regime or Overseas Workday Relief for a tax year are not entitled to the CGT annual exempt amount for that year.

The FIG regime, introduced in April 2025, is particularly relevant to qualifying individuals who become UK tax resident after a period of non-UK residence.

For example, someone who has recently moved to the UK and claims FIG relief on qualifying overseas income or gains cannot also use the £3,000 annual exempt amount against their chargeable gains for that tax year.

This restriction is important because applying an allowance incorrectly could understate the CGT liability.

The worked examples below assume that the individual is entitled to the full £3,000 annual exempt amount and has not claimed FIG relief or Overseas Workday Relief.

How is the Capital Gains Tax rate calculated?

The rate you pay is determined by your taxable income and the amount of your taxable gain.

For 2026/27, the standard basic-rate income tax band is £37,700 for England, Wales and Northern Ireland. Any unused portion of that band can generally be applied to chargeable capital gains at 18%, with the remainder taxed at 24%.

For example, someone with taxable income of £20,000 has £17,700 of unused basic-rate band. If they make a taxable capital gain of £30,000, the first £17,700 would be taxed at 18% and the remaining £12,300 at 24%.

This assumes the standard income tax bands apply, with no adjustments affecting the calculation.

Scottish income tax rates and bands differ for certain types of income, but CGT rates apply UK-wide. Scottish taxpayers should therefore take care when establishing how much of the basic-rate band remains available for CGT purposes.

The calculations can also be affected by reliefs, allowable capital losses, other disposals in the same tax year and the individual's wider income position.

Example 1: A UK resident selling investments

Consider someone living in England who sells shares held outside an ISA to help fund retirement or a future property purchase.

They have taxable income of £30,000 and make a capital gain of £25,000 after allowable costs.

Assuming they have no other gains or losses and their full annual exempt amount is available, the calculation is:

Because their taxable income is £30,000, they have £7,700 of the standard basic-rate band remaining.

This portion of their taxable gain is taxed at 18%, with the remainder taxed at 24%.

The example illustrates why it is not always correct to apply a single CGT rate to the entire gain.

If the individual is also preparing to move overseas, the timing of the sale may introduce additional considerations relating to tax residence and the rules in their destination country.

Example 2: A Spanish tax resident selling UK property

Consider someone who has lived in Spain for several years and decides to sell a UK rental property.

For this example, assume the property was purchased after April 2015, has never qualified for Private Residence Relief and the seller is entitled to the full annual exempt amount.

The illustrative UK CGT liability is £30,480, assuming the entire taxable gain falls within the 24% band.

However, the fact that the seller lives in Spain introduces further questions.

The UK generally retains the right to tax gains from UK property but Spain may also tax the gain because the individual is Spanish tax resident and potentially subject to tax on worldwide gains.

Any Spanish liability would need to be calculated under Spanish rules, including consideration of the UK-Spain double tax treaty and any available foreign tax credit.

The foreign-country tax treatment, calculation method, filing requirements and availability of tax credits should be confirmed with an appropriately qualified local adviser.

Reporting UK property disposals within 60 days

Non-UK residents who dispose of UK property or land are required to submit a UK Property Disposal return to HMRC within 60 days of completion, even where the calculation produces no UK Capital Gains Tax liability.

This applies to UK residential and commercial property and land.

Where CGT is payable, the relevant payment deadline will also generally be 60 days from completion.

The rules for UK residents differ. A UK resident disposing of residential property generally needs to report the disposal within 60 days where CGT is payable, subject to the applicable exceptions.

Late reporting or payment can result in penalties and interest.

Example 3: A non-resident selling UK property purchased before April 2015

For qualifying UK residential property owned before 6 April 2015, April 2015 rebasing is generally the default approach under the non-resident CGT rules.

This means the property's market value at 5 April 2015 can be used as the starting point for calculating the gain, rather than its original purchase price.

Consider someone who purchased a UK investment property in 2005 for £150,000. They subsequently moved abroad and became non-UK resident before April 2015.

The property was worth £300,000 on 5 April 2015 and is sold in 2026 for £450,000.

Assume the property has never qualified for Private Residence Relief, the individual has the full £3,000 annual exempt amount available and there are no additional allowable costs or losses.

How much difference does rebasing make?

If the gain were instead calculated using the original £150,000 purchase price, without other adjustments, the gain before the annual exempt amount would be £300,000.

At an assumed 24% CGT rate, this would produce a liability of £71,280 after the £3,000 annual exempt amount.

Using the April 2015 rebasing value produces an illustrative liability of £35,280, a difference of £36,000.

However, rebasing is not necessarily the most beneficial calculation method in every case.

In appropriate circumstances, the taxpayer may instead elect for a whole-period calculation or, where available, time apportionment.

The most appropriate method depends on the property's ownership history, values and the circumstances of the disposal.

A reliable historical valuation is important, and the available calculation methods should be reviewed before submitting the CGT return.

Different rules and rebasing dates can apply to non-residential property and other UK land, particularly following the extension of the non-resident CGT regime in April 2019.

Example 4: A UK resident selling overseas property when exchange rates have changed

Currency is an important consideration for UK residents who own property or investments abroad.

A gain calculated in euros, dollars or another currency may be significantly different from the gain calculated in pounds sterling.

Consider a UK resident who purchased a property in France for €300,000 and subsequently sold it for €350,000.

For illustration, assume the following exchange rates:

In euros, the property has increased in value by €50,000.

However, for UK CGT purposes, the sterling gain is approximately £68,182.

The difference arises because the pound weakened against the euro between the purchase and sale.

Assuming no other allowable costs, losses or reliefs, and that the full £3,000 annual exempt amount is available, the taxable gain would be approximately £65,182.

If the entire gain falls within the 24% CGT band, the illustrative UK tax would be approximately £15,644.

The property may also be taxable in France, with any available double taxation relief considered separately.

How are foreign currencies treated when calculating UK CGT?

For UK CGT purposes, foreign-currency amounts must generally be converted into sterling at the appropriate exchange rates for the relevant transactions.

This applies not only to the original acquisition cost and eventual sale proceeds, but also to allowable acquisition, improvement and disposal costs incurred in foreign currencies.

For example, if the property owner spent €40,000 on qualifying improvements several years before selling, that expenditure would generally be converted into sterling using the appropriate exchange rate when the expenditure was incurred.

It would not simply be converted using the exchange rate on the eventual sale date.

This means a UK CGT calculation involving an overseas property may require several historical exchange rates.

It also explains why calculating the gain in euros and converting only the final profit into sterling can produce an incorrect result.

Currency movements can work in either direction and an overseas asset may increase in local-currency value but produce a smaller sterling gain, or potentially a sterling loss.

Example 5: A US tax resident selling UK property and transferring the proceeds overseas

Imagine a UK non-resident living in the United States who sells a UK property for £500,000.

After repaying any mortgage, paying selling costs and settling their UK CGT liability, they have £300,000 available to transfer to the US.

The exchange rate at the time of transfer affects how many dollars they receive.

For illustration:

A movement from $1.20 to $1.30 changes the amount received by $30,000, despite the sterling proceeds remaining exactly the same.

These are illustrative exchange rates, before transfer fees or provider margins.

What about the US Capital Gains Tax liability?

There is also a separate US tax consideration.

A US tax resident may have to calculate the property gain in dollars using the applicable US tax rules and historical exchange rates which can result in a different taxable gain from the UK calculation.

Where the seller is subject to tax in both countries, foreign tax credits and the relevant treaty provisions may affect the final liability.

The foreign-country treatment, calculation method, filing requirements and availability of tax credits should be confirmed with an appropriately qualified US tax adviser.

The important distinction is that the exchange rate used to calculate a taxable gain is not necessarily the exchange rate used when transferring the sale proceeds.

Someone selling UK property while living overseas must consider both the tax implications and the financial consequences of moving the proceeds into another currency.

Example 6: Selling investments after leaving the UK

Non-UK residents are generally not subject to UK CGT on disposals of ordinary shares solely because those shares are in UK companies.

However, the temporary non-residence rules can bring certain gains back into UK taxation if the individual returns to the UK after a relatively short period overseas.

Consider someone who has lived and worked in the UK for 15 years before moving abroad.

They become non-UK resident and sell a share portfolio, realising a gain of £100,000.

If the disposal is outside the scope of UK CGT while they are non-resident, there may be no immediate UK CGT liability on that gain.

However, if they subsequently return to the UK within the period covered by the temporary non-residence rules, the gain could become taxable in the year of their return.

If the full £100,000 gain becomes chargeable and the individual is entitled to the £3,000 annual exempt amount, the taxable gain would be £97,000.

Assuming the entire gain falls within the 24% band, the illustrative CGT liability would be £23,280.

This is a simplified illustration. The temporary non-residence rules do not apply automatically to every disposal made while abroad. Their application depends on factors including the individual's previous UK residence history, the duration of non-residence, when the assets were acquired and the relevant statutory conditions.

There may also be tax to pay in the country where the individual was resident when the investments were sold.

For this reason, the decision to sell investments before or after leaving the UK should not be based solely on the headline 18% and 24% CGT rates.

What about capital losses and reliefs?

The worked examples above assume relatively straightforward circumstances. Actual calculations may be affected by allowable capital losses, gains from other disposals, Private Residence Relief and other applicable reliefs.

For property acquired before the introduction of the relevant non-resident CGT rules, rebasing and alternative calculation methods can also make a significant difference.

A property's ownership history is therefore important, particularly if it was previously your main home, has been rented out or was acquired many years before you moved abroad.

The availability of the annual exempt amount also needs to be established, particularly where an individual has claimed relief under the FIG regime or Overseas Workday Relief.

These issues should be assessed before calculating the final taxable gain.

The importance of professional advice

The examples in this article reflect the types of questions Experts for Expats and our specialist partners regularly encounter.

Some involve relatively straightforward calculations, while others require advice covering UK tax residence, foreign tax rules, property ownership, investment disposals or currency transfers.

Professional advice can be particularly valuable when you are preparing to sell a significant asset, have recently moved abroad, expect to return to the UK or may have tax obligations in more than one country.

Experts for Expats can help you identify an appropriate specialist, explain the type of support available and arrange an introduction to a trusted tax or currency partner where suitable.

An initial introduction is free and without obligation, but any formal advice, tax calculations or ongoing services would be agreed directly with the specialist.