Use cases / Investors & crypto

Tax for investors and crypto holders

Selling shares, funds or crypto outside an ISA or pension can create a capital gain. HMRC does not use first-in-first-out: acquisitions are matched in a fixed order, and multiple purchases of the same asset are averaged into a pool.

Key figures

Figure2025/262026/27
Capital gains annual exempt amount£3,000£3,000
CGT rate within the basic-rate band18%18%
CGT rate above the basic-rate band24%24%
Dividend allowance£500£500
Dividend tax (basic / higher / additional)8.75% / 33.75% / 39.35%10.75% / 35.75% / 39.35%
Business Asset Disposal Relief rate14%18%

How the rules work

Matching rules

A sale is matched first against purchases on the same day, then against purchases in the following 30 days (the "bed and breakfasting" rule), and only then against the section 104 pool, the running average cost of everything else you hold. The same rules apply to cryptoassets.

Allowance and rates

The first £3,000 of net gains each year is tax-free. Above that, gains are taxed at 18% to the extent they fall within your unused basic-rate band (£37,700 of taxable income) and 24% above it. Losses can be set against gains in the same year and carried forward if reported.

Reporting

You must tell HMRC about disposals if your gains are above the £3,000 allowance, if total sale proceeds exceed £50,000, or if you want to record a loss to carry forward.

Dividends

The first £500 of dividends is tax-free, then rates depend on your income band. Dividend rates for basic and higher-rate taxpayers rise by two percentage points in 2026/27.

Selling a business

Business Asset Disposal Relief charges qualifying gains at a flat 14% (2025/26) or 18% (2026/27) on up to £1,000,000 of lifetime gains.

Gains on residential property are also taxed at these rates but have separate reporting deadlines.

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HMRC and GOV.UK sources

General information for UK taxpayers, not personal tax advice. Figures reflect the 2025/26 and 2026/27 tax years and are checked against the same rules our calculators use.

Important Disclaimer

This tool provides estimates only for informational and planning purposes. It does not constitute professional tax, financial, or legal advice.

  • •Your actual tax liability may differ based on your specific circumstances
  • •Tax rules change frequently — verify current rates with HMRC
  • •Always consult a qualified accountant before making financial decisions

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