PropertyGainsTax

United Kingdom guide

The capital gains tax allowance

The capital gains tax annual exempt amount for 2026/27 is £3,000 per person. A couple who own a property jointly can use £6,000 between them. Gains within the allowance are tax-free.

Key figures at a glance
Allowance 2026/27£3,000
Couple, jointly owned£6,000
Applies toTotal gains in the tax year
Carry forwardNot allowed

What is the annual exempt amount?

The annual exempt amount is the total gain you can make across all assets in a tax year before any capital gains tax is due. For 2026/27 it is £3,000. It cannot be carried forward, so an unused allowance is lost at the end of the year.

Can a couple use two allowances?

Because the allowance is per person, a property owned jointly by a couple uses both allowances, sheltering £6,000 of gain. Transfers between spouses or civil partners are on a no-gain, no-loss basis, which can help arrange ownership before a sale.

Allowance against a gain

Gain on a jointly owned property£80,000
Two allowances−£6,000
Taxable gain£74,000

Each owner reports their half of the gain and uses their own allowance.

Try your own figures in the United Kingdom capital gains tax on property calculator.

Common questions

Can I carry forward an unused allowance?

No. The annual exempt amount cannot be carried to a later year. If it is not used, it is lost.

Has the allowance changed?

Yes. It was reduced in recent years and stands at £3,000 for 2026/27. Each calculator shows the figure it uses and its source.

This is an estimate for general information only, not tax, legal or financial advice. Tax rules are complex and depend on your circumstances, and figures may not reflect the latest changes. Confirm your position with HM Revenue & Customs (gov.uk) or a qualified tax adviser before acting. The terms of use set out the limits of this estimate and of our liability.

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