by Asim Abbas
11 November 2026 
Capital Gains Tax on shares: rates, matching rules and reporting
Capital Gains Tax on shares: rates, matching rules and reporting
If you sell shares or funds held outside an ISA or pension, you may owe Capital Gains Tax. With the annual exemption down to £3,000, far more investors now have something to report.
- Annual exempt amount: £3,000
- Rates: 18% basic and 24% higher
- Report if proceeds exceed £50,000
- Use ISAs and losses to cut the bill
Working out the gain isn’t always simple, because special matching rules decide which shares you’ve sold.
This guide explains the rates, matching rules, reporting thresholds and ways to reduce CGT.
CGT rates on shares
Since 30 October 2024, gains on shares are taxed at 18% if they fall within your basic rate band and 24% above it. Gains are added on top of your income to see which rate applies. The first £3,000 of total gains each year is tax-free.
Working out a gain
The gain is the sale proceeds, less the allowable cost of the shares and dealing costs. For shares bought at different times, HMRC’s matching rules decide the cost.
The matching rules
- Same day: shares sold are first matched with any bought the same day
- Bed and breakfast rule: then with shares bought in the next 30 days
- Section 104 pool: then with the average cost of all other shares held
The 30-day rule stops you selling and immediately buying back to crystallise a gain or loss. Buying back inside an ISA, known as Bed and ISA, avoids it.
Capital gains tax calculator
Work out CGT on your sale.
Raj holds 2,000 shares in his pool at an average cost of £5. In 2026/27 he sells 1,000 for £14,000. His cost is £5,000, so the gain is £9,000. After the £3,000 exemption, £6,000 is taxable. With income of £40,000, £10,270 of his basic rate band is left, so all £6,000 is taxed at 18%: £1,080.
When to report
- Taxable gains above the £3,000 exemption
- Total proceeds over £50,000, even if there’s no tax
- Losses you want to use, within four years
Report through Self Assessment or HMRC’s real-time CGT service, which lets you pay without a full return if you don’t otherwise file one.
Fixed-fee accountancy support
Transparent monthly packages for sole traders, landlords and limited companies. Fixed fees agreed upfront, VAT included.
Get a fixed-fee quoteCall 0161 531 4179Ways to reduce CGT
- ISAs and pensions: gains are tax-free
- Use both partners’ exemptions: transfers between spouses are tax-neutral
- Spread sales: across tax years to use two exemptions
- Claim losses: offset against gains of the same year, or carry forward
- Bed and ISA: sell and rebuy within an ISA
- Pension contributions: extend the basic rate band, bringing more gains into 18%
Funds, dividends and foreign shares
Accumulation units add reinvested income to your cost, which reduces the gain. Foreign shares follow the same rules, with currency converted at the time of each transaction. Crypto has its own pooling rules, covered in our crypto tax guide.
See HMRC’s guide to tax when you sell shares, use our CGT calculator, or ask our capital gains tax team to prepare your figures.
What should I do next?
Purchases and sales.
Same day, 30 days, pool.
Proceeds, not gains.
Frequently Asked Questions
What is the CGT allowance for 2026/27?
£3,000.
What are the CGT rates on shares?
18% within your basic rate band and 24% above it.
What is the 30-day rule?
Shares sold are matched with shares of the same company bought in the following 30 days.
Do I need to report if I made a loss?
You must report losses within four years to use them against future gains.
Is there CGT on ISA shares?
No. Gains inside an ISA or pension are tax-free.
Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.
About the Author
Asim Abbas
I’m Asim Abbas, founder of Wingate Accountants and a Chartered Certified Accountant. I help sole traders, landlords and directors stay on top of their tax with fixed fees and plain-English advice.
