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Capital Gains Tax UK 2026: 9 Legal Ways to Reduce Your CGT Bill (Most Taxpayers Miss These)

Capital Gains Tax (CGT) can take a significant portion of your profits when selling property, shares, or other investments. This guide explains 9 fully legal ways UK taxpayers can reduce their Capital Gains Tax bill in 2026 — and when to seek professional advice to avoid costly mistakes.

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The Tax Faculty

2/19/20263 min read

Selling property, investments, or other valuable assets can be exciting — but it can also be stressful. For many UK taxpayers, the thought of Capital Gains Tax (CGT) quickly turns that excitement into worry. “Am I paying too much?” “Did I claim all the reliefs I’m entitled to?” “What if I miss a deadline with HMRC?”

If you’re feeling overwhelmed, you’re not alone. Thousands of individuals face these same questions every year — and many end up paying more tax than they need to simply because they didn’t have the right guidance.

This guide is designed to take the stress out of CGT. We’ll walk you through 9 fully legal ways to reduce your CGT bill in 2026, explain the deadlines, allowances, and reliefs you might be missing, and show you how professional advice can help protect your hard-earned wealth.

Don't Less CGT Stress Take it's Toll

Capital Gains Tax is charged on the profit you make when you sell an asset that has increased in value. You only pay tax on the gain — not the total sale price.

Common situations where CGT applies include:

Selling a buy-to-let property
Selling a second home
Selling shares or investment portfolios
Selling cryptocurrency
Disposing of valuable personal assets

CGT is administered by HM Revenue and Customs, and strict reporting deadlines apply — especially for property sales.

Back to Basics: What Is Capital Gains Tax?

Your CGT rate depends on your income and the type of asset sold.

Property gains:

18% for basic rate taxpayers
24% for higher and additional rate taxpayers

Shares and other investments:

10% for basic rate taxpayers
20% for higher and additional rate taxpayers

Even small planning steps can significantly reduce what you owe.

Capital Gains Tax Rates UK (2025/26)

1. Use Your £3,000 Annual Allowance

Everyone gets £3,000 of gains tax-free each year — use it!

2. Transfer Assets to Your Spouse

Transfers are tax-free between spouses or civil partners, allowing two allowances to be used.

3. Spread Sales Across Tax Years

Sell assets gradually to use multiple allowances and reduce taxable gains.

4. Offset Losses

Any losses from other assets can reduce your taxable gain.

5. Use ISAs

Investments inside an ISA are completely CGT-free.

6. Pension Contributions

Contributing to a pension can lower your taxable income and CGT rate.

7. Claim Private Residence Relief

Your main home is usually exempt from CGT — second homes are not.

8. Deduct Allowable Costs

Include legal fees, purchase costs, agent fees, and improvements.

9. Get Professional Advice 💼

A specialist tax adviser can help you plan your disposals, minimise tax legally, and stay compliant with HMRC — potentially saving thousands and avoiding costly mistakes.

9 Ways to Legally Reduce Your CGT Liability

Capital Gains Tax doesn’t have to take a large share of your profit. With the right planning and professional advice, you can ensure you pay only what’s necessary — and nothing more.

Understanding your options before selling is the key to protecting your wealth. Contact The Tax Faculty today to schedule your free consultation and see how professional support can take away the stress of CGT AND protect your profits.

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Protect Your Profits With Professional Help

Capital Gains Tax Expertise: The Tax Faculty LLP Managing Partner Charles Tateson Named UK Capital Gains Tax Advisor of the Year 2023

The Finance Monthly Taxation Awards recognises the achievements of tax professionals from around the globe.

Winning such an award is no small feat. It is a reflection of hard work, extensive knowledge, and an ability to navigate the intricacies of the UK tax system.

Read more about Charles and the award here.

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