Industry News - 14th October 2026
Selling shares or other investments can trigger a Capital Gains Tax bill, but the tax applies to your profit, not the total amount you receive from the sale.
If you plan to sell shares during the 2026/27 tax year, it is important to understand how your gain is calculated, which exemptions or reliefs may apply, and whether you need to report the disposal to HMRC.
How is your gain calculated? 🔢
Your gain is usually the difference between:
- the amount you originally paid for the shares
- the amount you receive when you sell them.
You may be able to deduct certain costs associated with buying and selling the shares, including stockbroker fees and Stamp Duty Reserve Tax.
For example, if you bought shares for £10,000 and later sold them for £16,000, your initial gain would be £6,000. Any allowable buying and selling costs could then reduce this figure.
What is the CGT allowance? 💷
Individuals currently have an annual Capital Gains Tax exemption of £3,000 for the 2026/27 tax year.
This allowance applies to your total chargeable gains across the tax year, not separately to each investment you sell.
You should also consider any allowable capital losses. These may reduce your taxable gains, and you may be able to carry forward certain unused losses from previous years.
How much Capital Gains Tax will you pay? 📊
The rate you pay depends on your taxable income and the amount of your taxable gain.
For disposals from 6th April 2026:
- Basic-rate taxpayers generally pay 18% on gains falling within the unused basic-rate Income Tax band
- gains falling above the basic-rate band are generally taxed at 24%.
Higher-rate and additional-rate taxpayers will usually pay 24% on their taxable gains.
Your taxable income and gains are considered together, which means part of a gain may be taxed at 18% and the remainder at 24%.
Are any shares exempt from Capital Gains Tax? ✅
You will not usually pay Capital Gains Tax when disposing of:
- shares held within an ISA
- certain shares held within an employer Share Incentive Plan
- UK government gilts
- Qualifying Corporate Bonds
You also do not usually pay Capital Gains Tax when giving shares to your spouse or civil partner, provided you are living together, or when giving them to a charity.
However, transfers between spouses or civil partners can affect the tax position when the recipient eventually sells the shares, so it is important to retain the original purchase information.
What if you bought shares at different times? 📅
Calculating the gain could become more complicated if you bought the same type of shares in the same company on different dates and at different prices.
In these circumstances, the shares are generally grouped, and you use an average purchase cost. Special identification rules may also apply if you bought shares on the same day as the sale or within the following 30 days.
Accurate transaction records are essential when completing the calculation.
Could any tax reliefs apply?🛡️
Depending on the type of shares and the circumstances of the disposal, tax relief may reduce or defer the amount of Capital Gains Tax due.
Potential reliefs can include:
- Business Asset Disposal Relief
- Gift Hold-Over Relief
- Enterprise Investment Scheme relief
- Seed Enterprise Investment Scheme relief
- Certain replacement or rollover reliefs
Each relief has specific eligibility conditions, so you may need professional advice before relying on one.
Do you need to report the sale?📝
If your taxable gains exceed the annual exemption after deducting allowable losses, you will normally need to report them to HMRC.
You can usually report share gains through your Self Assessment tax return or, in some circumstances, through HMRC’s real-time Capital Gains Tax service.
If you are already registered for Self Assessment and use the real-time service, you must still include the disposal on your tax return.
Perrigo Perspective💡
Capital Gains Tax planning is best considered before you sell shares, not after the transaction has already taken place.
Reviewing your expected gains and losses in advance may help you use your annual exemption effectively, identify any available reliefs and avoid an unexpected tax bill.
If you are selling a substantial shareholding, disposing of shares in your own company or selling investments acquired at different times, seek advice before completing the sale.
Planning to sell shares?
The rules surrounding shares and Capital Gains Tax could become complicated, particularly if you bought shares at different times or may qualify for tax relief.
If you are considering selling shares and would like help calculating your potential gain and understanding the tax implications, contact the Perrigo Consultants team on 01299 488860 or book a FREE discovery call below.
Internet link: You can also check the latest guidance on Tax when you sell shares on GOV.UK
