Capital Gains Tax (CGT) rules have changed significantly over the last few years, leaving many homeowners and property investors wondering whether they still qualify for exemptions and reliefs.
The good news is that Private Residence Relief (PRR) remains the main exemption for homeowners. However, changes to Capital Gains Tax rates, annual allowances, and reliefs mean it’s more important than ever to understand the current rules in force before selling a property.
In this guide, we’ll explain the new Capital Gains Tax rules in force as of right now, who qualifies for exemptions, and what you can do to reduce your Capital Gains Tax liability.
Jump to Section:
- What Are the New Capital Gains Tax Rules?
- What Makes You Exempt From Paying Capital Gains Tax?
- What Are the Current Capital Gains Tax Rates?
- What Is the Current Capital Gains Tax Exemption Amount?
- How Can You Reduce Your Capital Gains Tax?
- Book a Capital Gains Tax Valuation
- New Capital Gains Tax Rule FAQs
What Are the New Capital Gains Tax Rules?
Several important Capital Gains Tax changes have been introduced in recent years.
| Rule | Current Position (2026/27 Tax Year) |
| Annual Capital Gains Tax Allowance | £3,000 for individuals |
| Residential Property CGT Rates | 18% (basic rate) and 24% (higher rate) |
| Business Asset Disposal Relief Rate | 18% |
| Final Period Exemption | 9 months |
| Private Residence Relief | Still available where qualifying conditions are met |
These changes have reduced the amount many taxpayers can realise tax-free and increased the tax payable on certain disposals.
What Makes You Exempt From Paying Capital Gains Tax?
The most common exemption is Private Residence Relief (PRR).
You will usually qualify if:
- The property has been your only or main residence throughout your ownership
- You have not used part of the property exclusively for business purposes
- The total grounds are normally no larger than the permitted area
- The property was not purchased primarily to make a profit through resale
If you qualify for full Private Residence Relief, you will usually pay no Capital Gains Tax when selling your home.
What Are the Current Capital Gains Tax Rates?
From the 6th April 2026, the main Capital Gains Tax rates are:
| Taxpayer | Capital Gains Tax Rate |
| Basic Rate Taxpayer | 18%* |
| Higher or Additional Rate Taxpayer | 24% |
*Basic-rate taxpayers may pay a combination of rates depending on their taxable income and the size of their gain.
What Is the Current Capital Gains Tax Exemption Amount?
Every individual currently has an Annual Exempt Amount of £3,000.
This means that only gains above this threshold (after deducting allowable losses and reliefs) are potentially taxable. The allowance has been significantly reduced from previous years, making professional tax planning increasingly more important.
How Can You Reduce Your Capital Gains Tax?
Depending on your circumstances, you may be able to reduce your Capital Gains Tax liability by:
- Claiming Private Residence Relief
- Using your Annual Exempt Amount
- Offsetting capital losses
- Claiming allowable buying and selling costs
- Claiming qualifying improvement costs
- Obtaining a professional Capital Gains Tax valuation where appropriate
An accurate valuation is particularly important when calculating gains on property, as HMRC may require evidence to support your figures.
Find out more about reducing your Capital Gains Tax in our guide: How Long Do I Have to Live In a Property to Avoid Capital Gains Tax?
Book Your Capital Gains Tax Valuation Today
At Crest Surveyors, we provide independent RICS-certified Capital Gains Tax valuations that are designed to support your tax position with accurate, defensible market evidence.
Whether you’re selling a former home, investment property, or mixed-use asset, our valuations help ensure your figures are fully supported and HMRC-compliant.
Speak to our team to book a professional Capital Gains Tax Valuation today.
New Capital Gains Tax Rule FAQs
Can I Still Claim the 9-Month Capital Gains Tax Exemption?
Yes. The final 9 months of ownership still qualify for Private Residence Relief if the property has been your main residence at some point during ownership.
This rule replaced the older 18-month and 36-month extensions and is now the standard final exemption period for most homeowners.
Read our guide: What Is the Capital Gains Tax 9 Month Rule?
What Was the 36 Month Capital Gains Tax Rule?
The 36-month rule was a former Private Residence Relief extension that allowed a longer tax-free period after moving out of a home.
It has now been reduced and replaced by the 9-month final exemption period in most cases. However, it is still widely referenced online, which can cause confusion for homeowners reviewing older guidance.
Read our blog, What Was the 36 Month Rule for Capital Gains Tax? for more information.
Is There a 6-Year Capital Gains Tax Rule In the UK?
There is no general “6-year rule” in UK Capital Gains Tax law for residential property. Confusion often arises from specific relief scenarios and historical interpretations. However, the UK system does not provide a blanket 6-year exemption.
Who Qualifies For 0% Capital Gains Tax?
You may pay 0% Capital Gains Tax if your gain is fully covered by Private Residence Relief, falls within your £3,000 Annual Exempt Amount, or is reduced to nil after deducting allowable losses and reliefs. Certain transfers, such as gifts to a spouse or civil partner, are also exempt from Capital Gains Tax.
What Is the 90% Rule For Capital Gains Exemption?
There is no general “90% rule” for Capital Gains Tax exemption in the UK. The term is sometimes used in relation to specific tax reliefs or specialist business tax rules, but it does not apply to the sale of residential property. Most homeowners should instead consider whether they qualify for Private Residence Relief and other HMRC-approved exemptions.
What Threshold Do You Have to Pay Capital Gains Tax?
For the 2026/27 tax year, you’ll generally only pay Capital Gains Tax if your taxable gains exceed the Annual Exempt Amount of £3,000 after deducting any allowable losses and reliefs. The amount of tax you pay will then depend on your income, the type of asset you’ve sold, and any reliefs you’re entitled to claim.