Annual Exempt Amount (CGT)
UK tax glossary · Last reviewed: April 2026
The Annual Exempt Amount (AEA) for Capital Gains Tax is £3,000 in 2026/27 — sharply reduced from £12,300 in 2022/23. Each individual has their own AEA; married couples and civil partners each have a separate exemption and can transfer assets between themselves at no gain/no loss.
The AEA cannot be carried forward — any unused exemption is simply lost. Gains above £3,000 are taxed at 18% (basic rate) or 24% (higher/additional rate) for most assets, or 24%/28% for residential property not qualifying for Private Residence Relief.
Losses realised in the same tax year are deducted from gains before the AEA is applied. Losses carried forward from earlier years are deducted after the AEA, so they only shelter gains above £3,000.
Worked example
Shares sold: gain £9,000. AEA: £3,000. Taxable gain: £6,000. Basic-rate taxpayer: £6,000 × 18% = £1,080 CGT. Higher-rate taxpayer: £6,000 × 24% = £1,440 CGT.
Common questions
Can I use my spouse's Annual Exempt Amount?
Not directly. You cannot transfer your unused AEA. However, you can transfer assets to your spouse at no CGT before they sell, allowing both exemptions to be used.
Does the AEA apply to my main home?
Usually not relevant — the main home is normally exempt from CGT under Private Residence Relief. The AEA would only matter if PPR is restricted, for example if part of the home was used exclusively for business.
Related resources
TaxHelper provides general information based on published HMRC rates and guidance. It is not regulated financial or tax advice. For decisions involving significant sums, complex circumstances, or if you are unsure, speak to a qualified accountant or HMRC directly.