Taxation (UK) · The computation of capital gains tax

CGT Rates and Payment Dates for ACCA Taxation (UK)

Updated 11 October 2026 · Fact-checked

Individuals pay CGT at 18% on taxable gains falling within any unused basic rate band (£37,700 less taxable income) and 24% on the rest. UK residential property gains must be reported and paid within 60 days of completion. Other gains are reported through self-assessment and paid by 31 January after the tax year.

Understand CGT Rates and Payment Dates

Capital gains tax (CGT) is charged on the net gain left after losses and the annual exempt amount. The rate depends on your income. You do not simply pick 18% or 24%. The gain is treated as the top slice of your income, so your taxable income decides how much basic rate band is left.

Taxable income means income after the personal allowance. Take the basic rate band of £37,700 and deduct taxable income. Whatever is left is the unused band. Taxable gains up to that amount are taxed at 18%. Any taxable gains above it are taxed at 24%. If your taxable income already uses the whole band, all of the gain is taxed at 24%. If your taxable income is nil or negative, you still only have £37,700 of band, not more.

The rates are the same for residential property and for other assets such as shares. Residential property is different only for reporting and payment. The tax rates and allowances ACCA provides show just two main rates, 18% and 24%. They also show 14% for gains qualifying for business asset disposal relief or investors' relief, up to a lifetime limit of £1,000,000.

The due date depends on the asset. For a disposal of UK residential property, you file a CGT return and pay the tax within 60 days of completion. For other gains, you report the gain on your self-assessment tax return and pay by 31 January following the end of the tax year. So a gain on shares in 2026/27 is due by 31 January 2028.

The 60-day return is about tax being payable. If the gain is covered by the annual exempt amount, or the gain is exempt, there is no tax to pay and no 60-day return is needed on that disposal.

Key rules to remember

CGT rates for individuals: Lower rate 18%; higher rate 24%; The 18% rate applies to gains within the unused basic rate band. The 24% rate applies to the rest.
Unused basic rate band: £37,700 − taxable income (not below nil); Taxable income is after the personal allowance. Extend the band for gross Gift Aid donations and personal pension contributions.
Annual exempt amount: £3,000; Deduct from total gains after current year losses. It is not a tax-free band.
Taxable gain: Gains − current year losses − brought forward losses (as needed) − annual exempt amount; Set this against the unused band to split between 18% and 24%.
BADR and investors' relief rate: 14% on qualifying gains; lifetime limit £1,000,000; This is a separate rate for qualifying gains only. Do not apply it to ordinary gains.
Due date: UK residential property: Return and payment within 60 days of completion; Applies where CGT is payable on a UK residential property disposal.
Due date: other gains: 31 January following the end of the tax year; Gains are reported on the self-assessment return. Example: 2026/27 gains are due by 31 January 2028.

How to solve CGT Rates and Payment Dates questions

Use this order for any question that asks for CGT payable or the due date.

1Compute each gain first, using disposal proceeds less cost and allowable costs, and apply any reliefs.
2Net off the capital losses, then deduct the annual exempt amount of £3,000 to get taxable gains.
3Find taxable income: income after the personal allowance. Extend the basic rate band if the question gives Gift Aid or pension contributions.
4Work out the unused band: £37,700 (plus any extension) less taxable income. If this is nil or negative, use nil.
5Tax gains up to the unused band at 18% and the balance at 24%. Tax any gains qualifying for BADR or investors' relief at 14%.
6Add up the tax and state the due date: 60 days from completion for UK residential property, or 31 January after the tax year for other gains.
7Show your workings clearly. Each band and rate should be on its own line so marks can be awarded.

Quickest way: Band-first CGT calculation

When to use it: Use this when you have a single taxable gain figure and a taxable income figure, especially in objective test questions.

Write the unused band: 37,700 minus taxable income.
Compare it with the taxable gain (after the £3,000 exempt amount).
If the gain is smaller, tax all of it at 18%. If the band is nil, tax all of it at 24%.
Otherwise tax the band amount at 18% and the excess at 24%.
For the date, ask one question: is it UK residential property? Yes means 60 days from completion. No means 31 January after the tax year.

Common mistakes in CGT Rates and Payment Dates

Using total income instead of taxable income to find the unused band.
Students forget that the personal allowance is deducted first.
Fix: Always deduct the personal allowance. Use only the figure left after it when working out how much of £37,700 is used.
Applying 24% to all gains because the person is a higher rate taxpayer, or 18% to all because they are a basic rate taxpayer.
Students link the rate to a label rather than to the remaining band.
Fix: Calculate the unused band every time. A gain can be split between 18% and 24%.
Deducting the annual exempt amount from the gain after applying the rates, or forgetting it.
Students treat it like a tax reducer or a nil rate band.
Fix: Deduct the £3,000 from the gains first. Only the taxable gain goes into the band calculation.
Using a higher residential property rate.
Older notes distinguished property rates from other asset rates.
Fix: Use the two rates in the ACCA rates table, 18% and 24%, for all assets. Residential property differs in the 60-day deadline only.
Giving 31 January as the due date for a UK residential property sale where tax is payable.
Students remember the self-assessment date and forget the special property rule.
Fix: Count 60 days from completion. Do not use the exchange date.
Giving the wrong 31 January, such as 31 January in the same tax year as the gain.
Students forget the tax year ends on 5 April.
Fix: For a 2026/27 gain, the year ends 5 April 2027, so the due date is 31 January 2028.

Worked examples

Example 1

Priya has taxable income of £25,000 for 2026/27 (after her personal allowance). She makes total chargeable gains of £50,000 on shares and has no capital losses. Calculate her CGT liability and state when it is due.

Show the solution

Taxable gain: £50,000 − £3,000 annual exempt amount = £47,000.
Unused basic rate band: £37,700 − £25,000 = £12,700.
Tax at 18%: £12,700 × 18% = £2,286.
Remaining gain: £47,000 − £12,700 = £34,300. Tax at 24%: £34,300 × 24% = £8,232.
Total CGT: £2,286 + £8,232 = £10,518.
The gain is on shares, so it is reported on the 2026/27 self-assessment return and paid by 31 January 2028.

Answer: CGT is £10,518, due by 31 January 2028.

Example 2

Raj has taxable income of £60,000 for 2026/27. He sells a UK residential property, with completion on 12 June 2026, making a chargeable gain of £30,000. He has no other disposals or losses. Calculate the CGT and state the due date.

Show the solution

Taxable gain: £30,000 − £3,000 = £27,000.
Unused basic rate band: his taxable income of £60,000 exceeds £37,700, so the band is nil.
All the gain is taxed at 24%: £27,000 × 24% = £6,480.
This is a UK residential property disposal with tax payable, so the return and payment are due within 60 days of completion.
Counting from 12 June 2026: 18 days to 30 June, 31 days in July makes 49, then 11 days into August makes 60. The deadline is 11 August 2026.

Answer: CGT is £6,480, reported and paid by 11 August 2026.

Exam tips

Write out the unused band line in every answer. It is the step where most marks are won or lost.
In objective tests, check first whether the question says taxable income or total income. Adjust for the personal allowance if needed.
Read for the type of asset. If it is UK residential property, expect a 60-day date question.
Count 60 days from completion date, not contract date, and do it day by day to avoid month-length errors.
Check the tax year in the question before giving a 31 January date. The date is the January after the following 5 April.

Practice questions from The computation of capital gains tax

CGT Rates and Payment Dates in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

ACCA Strategic ProfessionalCGT Rates, Annual Exempt Amount and Payment

CGT Rates and Payment Dates: frequently asked questions

What are the CGT rates for individuals in TX-UK?

The rates are 18% and 24%. The 18% rate applies to taxable gains within any unused basic rate band and 24% applies to the rest. Qualifying business asset disposal relief or investors' relief gains are taxed at 14%.

Is the CGT rate different for residential property?

Not in the rates table ACCA provides for this exam. The same 18% and 24% apply whatever the asset. The difference for UK residential property is that you must report and pay within 60 days of completion.

When is CGT due on shares or other assets?

You report the gain on your self-assessment return and pay by 31 January following the end of the tax year. For 2026/27 gains, that is 31 January 2028.

How do I use the basic rate band for CGT?

Deduct your taxable income from £37,700. Tax taxable gains up to that amount at 18% and the excess at 24%. If your taxable income is already £37,700 or more, all your taxable gain is at 24%.

Do I need a 60-day return if there is no CGT to pay?

No. The 60-day return is required where tax is payable on the UK residential property disposal. If the gain is fully covered by the annual exempt amount or is exempt, there is no tax to report within 60 days.