Last updated: 14 October 2026
How can you avoid capital gains tax when your gains are close to the limit?
If your gains are just above the £3,000 annual exempt amount, you can often bring them under it legally by timing disposals across tax years, using losses, transferring assets to a spouse or civil partner before selling, or moving investments into an ISA or pension. Each person has their own £3,000 exemption, and it can’t be carried forward, so using it every year matters. Planning works best before you sell, not after, because most of these steps can’t be done retrospectively.
Ways to stay within the exemption
| Strategy | How it helps |
| Split sales across tax years | Use two £3,000 exemptions, for example selling some shares before 5 April and some after |
| Transfer to a spouse or civil partner | Transfers are at no gain, no loss; you both use your exemptions and basic-rate bands |
| Use capital losses | Current-year losses are set against gains first; earlier losses only reduce gains to £3,000 |
| Bed and ISA | Sell shares, then rebuy them inside an ISA (up to £20,000 a year), so future gains are tax-free |
| Bed and spouse | Sell, and your spouse buys the same shares, avoiding the 30-day matching rule |
| Pension contributions | Extend your basic-rate band, so more of your gain is taxed at 18% rather than 24% |
| Gift to charity | Gifts of shares or property to charity are free of CGT |
The 30-day rule
If you sell shares and buy the same shares back within 30 days, the sale is matched with the repurchase, not your original cost. That stops “bed and breakfasting” from crystallising gains. Bed and ISA, or bed and spouse, avoid this rule.
Example
Omar has share gains of £5,400 planned for March. If he sells all of them before 5 April, £2,400 is taxable. Instead, he sells half in March (£2,700 gain) and half in April (£2,700), using two exemptions and paying no CGT. He then buys £20,000 of the same fund in his ISA.
Reporting
If your gains are under £3,000 and your total disposal proceeds are less than £50,000, you usually don’t need to report them. If proceeds are higher, you must report even if no tax is due. Losses must be reported within 4 years to be used later.
UK residential property
For UK residential property, you must report and pay within 60 days of completion if tax is due. Splitting ownership with a spouse before a sale can halve each person’s gain, but the transfer must be genuine and made before exchange of contracts.
Watch out for
- Anti-avoidance rules if transfers are not genuine
- Stamp duty if a spouse takes on a share of a mortgage
- The loss of private residence relief if a property hasn’t been your main home for the whole period
Frequently asked questions
Can I carry forward unused exemption?
No, it’s lost if unused.
Do children have an exemption?
Yes, but gifts to minor children can create parental tax charges on income.
Are ISAs always CGT-free?
Yes, gains inside an ISA are tax-free.
Is the exemption the same for trusts?
No, trustees get £1,500.
Related: what figures are used for CGT and CGT on gifts to family.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with reducing capital gains tax. See our capital gains tax accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
