Capital Gains Tax in Scotland is an important consideration for individuals, landlords, investors and business owners selling property, shares or other valuable assets. With changes to CGT rates and allowances since 2023/24, understanding the rules for the 2026/27 tax year is essential for calculating potential tax liabilities and planning disposals effectively. Although Scotland has its own income tax bands, capital gains tax follows UK-wide rules administered by HMRC. At Apex Accountants, we help taxpayers calculate chargeable gains, identify available reliefs and meet their reporting obligations.
For the 2026/27 tax year, Capital Gains Tax (CGT) in Scotland is generally charged at 18% for gains falling within the unused UK basic rate Income Tax band and 24% for gains above that band. These rates apply to most taxable gains, including shares, second homes and buy-to-let properties. Individuals also receive a £3,000 annual CGT tax-free allowance.
Capital Gains Tax is a UK-wide tax, so Scottish residents follow the same CGT rules and rates as taxpayers elsewhere in the UK. However, the amount payable depends on taxable income, the size of the gain, available exemptions and qualifying reliefs.
This guide explains five key Capital Gains Tax rules and developments relevant to Scottish taxpayers in 2026/27, including a practical calculation, property disposal rules, reporting deadlines and ways to reduce your tax liability legally.
Scotland capital gains tax rules are set by the UK government rather than the Scottish government. Therefore, Scottish residents pay the same CGT rates as individuals in England, Wales and Northern Ireland.
For the tax year 6 April 2026 to 5 April 2027, the following rates apply:
The applicable rate may depend on how much of the gain falls within the unused UK basic rate band. Special rules may apply to certain assets and qualifying disposals.
The CGT system has undergone several changes in recent years.
The higher residential property CGT rate was reduced from 28% to 24% on 6 April 2024. Meanwhile, the main CGT rates increased from 10% and 20% to 18% and 24%, respectively, for disposals made on or after 30 October 2024.
The Business Asset Disposal Relief rate increased to 14% on 6 April 2025 and then to 18% on 6 April 2026.
If you are wondering how much is capital gains tax in Scotland for your property or investment sale, the amount payable depends on your taxable income, the gain realised, available exemptions and the applicable CGT rates for 2026/27.
To calculate your CGT liability, follow these steps:
Although Scotland has its own Income Tax bands for employment, pension and most other non-savings income, these do not directly determine CGT rates.
For 2026/27, the standard UK basic rate band used for CGT calculations is £37,700 of taxable income, subject to applicable adjustments.
For example, a Scottish taxpayer paying 42% Income Tax on part of their salary does not automatically pay 24% CGT on every capital gain. The CGT calculation depends on their taxable income and the unused UK basic rate band.
This distinction is particularly important for Scottish taxpayers because the Scottish Income Tax thresholds differ from those elsewhere in the UK.
Consider a Scottish landlord who sells a buy-to-let property during the 2026/27 tax year.
Assume the property has never been the landlord’s main residence, so Private Residence Relief is unavailable. The landlord has no other chargeable gains, losses or relevant adjustments during the tax year.
Assume the landlord has £30,000 in taxable income after their Personal Allowance and applicable Income Tax reliefs.
Step 1: Identify the unused basic rate band
£37,700 − £30,000 = £7,700
Step 2: Calculate CGT at 18%
£7,700 × 18% = £1,386
Step 3: Calculate CGT at 24%
Remaining taxable gain:
£57,000 − £7,700 = £49,300
£49,300 × 24% = £11,832
Step 4: Calculate the total CGT liability
£1,386 + £11,832 = £13,218
Result: The landlord would pay £13,218 in Capital Gains Tax
This calculation uses the 2026/27 rates and annual exempt amount. The actual liability may differ if the landlord has other gains, allowable losses, additional reliefs or adjustments to their basic rate band.
As CGT is due on this UK residential property disposal, the landlord must generally report and pay the tax to HMRC within 60 days of completing the sale.
Selling a property in Scotland can create a capital gains tax liability, depending on the property’s use, ownership history and eligibility for tax relief.
The rules are particularly relevant to landlords, second-home owners and individuals selling inherited property.
If you sell your main home, you will generally not pay CGT if you meet all the conditions for full Private Residence Relief.
These conditions normally include:
Where the conditions for full relief are not met, partial relief may still be available.
For qualifying properties that have been the owner’s main residence at some point, the final nine months of ownership generally qualify for Private Residence Relief, even if the owner no longer lives there.
Capital gains from selling second homes and investment properties are generally subject to CGT where the gain exceeds available exemptions and reliefs.
For 2026/27, the standard CGT rates are:
The gain is calculated using the allowable purchase costs, disposal costs, qualifying capital improvements and any applicable reliefs.
Routine maintenance and repairs generally do not qualify as capital improvement expenditure for CGT purposes.
Inheriting property does not normally trigger an immediate CGT charge for the beneficiary.
However, Capital Gains Tax may arise when the inherited property is subsequently sold.
The property’s market valuecapital gains tax at the date of death generally forms the starting acquisition value for the beneficiary’s CGT calculation.
For example, if you inherit a property valued at £200,000 and later sell it for £240,000, the initial gain would generally be £40,000 before deducting allowable expenses, losses, exemptions and reliefs.
Inheritance tax is a separate consideration and may apply to the deceased’s estate.
Scottish residents must generally report and pay CGT due on UK residential property within 60 days of completion.
The reporting process is handled through HMRC’s Capital Gains Tax on UK property service, not Revenue Scotland.
If the taxpayer is also required to file a Self Assessment return, the disposal may need to be included in that return.
Property owners should not wait until the next annual Self Assessment deadline to report a taxable residential property disposal.
Although capital gains tax cannot always be avoided, legitimate tax planning can reduce the amount payable.
The following strategies may help Scottish taxpayers manage their CGT liabilities.
The capital gains tax allowance Scotland residents can claim is the same UK-wide annual exempt amount: £3,000 for individuals in 2026/27.
You can generally realise net chargeable gains up to this amount without paying CGT, provided no special rules alter the treatment.
However, unused annual exemptions cannot be carried forward into another tax year.
When planning investment disposals, consider whether spreading sales across different tax years could make better use of available allowances.
Transfers of assets between spouses or civil partners living together are generally treated as taking place on a no-gain, no-loss basis.
This can allow couples to make use of their individual annual CGT exemptions and potentially different available basic rate bands when assets are subsequently sold.
However, the recipient usually inherits the original CGT acquisition cost rather than receiving a new market-value cost.
Transfers should be genuine and completed before the relevant disposal. Additional considerations may apply to property transfers, including Scottish Land and Buildings Transaction Tax.
Investments held within qualifying Individual Savings Accounts (ISAs) are generally exempt from CGT.
The annual ISA subscription limit remains £20,000 for 2026/27.
Investments held within registered pension schemes, including qualifying Self-Invested Personal Pensions (SIPPs), also generally benefit from CGT exemption within the pension wrapper.
However, pension access restrictions, contribution limits and other tax rules should be considered before investing.
If you dispose of one investment at a gain and another at a loss, you may be able to offset the allowable loss against your chargeable gains.
Unused allowable capital losses may generally be carried forward, provided they are properly claimed or notified to HMRC within the relevant time limits.
Taxpayers should maintain accurate records of asset purchases, disposals and losses to support their calculations.
Business owners selling qualifying business assets may benefit from Business Asset Disposal Relief.
From 6 April 2026, the CGT rate on qualifying gains is 18%.
The relief is subject to eligibility conditions and a lifetime limit of £1 million in qualifying gains.
Business owners should review the relevant ownership, employment and trading conditions before claiming the relief.
CGT planning can become more complex when assets are jointly owned, inherited, gifted or held through business structures.
An experienced accountant can help you assess potential liabilities, identify available reliefs and understand your reporting responsibilities before completing a disposal.
Calculating your Capital Gains Tax accurately is only one part of compliance. Scotland capital gains tax reporting is handled by HMRC, so you must also determine whether the gain needs to be reported and when the tax must be paid.
For a disposal made during the 2026/27 tax year, the usual online Self Assessment filing and payment deadline is 31 January 2028.
The 60-day property reporting requirement is separate from this annual deadline.
You may need to report gains if:
The general disposal proceeds reporting threshold for Self Assessment is £50,000 in 2026/27, although separate reporting conditions may apply.
Non-UK residents have additional property disposal reporting obligations, including circumstances where no CGT is payable.
Capital gains tax can affect the financial outcome of selling property, shares, investments or business assets. Understanding the rates, allowances and reporting requirements before a disposal can help you make informed financial decisions.
We provide Capital Gains Tax advice and accounting support to individuals, landlords, investors and businesses throughout Scotland and across the UK.
Our services include:
Whether you are planning a property sale or disposing of an investment portfolio, professional advice can help you meet your tax obligations and avoid unnecessary mistakes.
No. Capital Gains Tax is a UK-wide tax, and the rates and annual exempt amount are the same across Scotland, England, Wales and Northern Ireland. Scottish Income Tax bands are different, but the UK basic rate band is used when calculating the applicable CGT rates.
The taxable gain is generally charged at 18% or 24%, depending on your taxable income and available UK basic rate band. You can normally deduct qualifying purchase, improvement and selling costs, as well as available allowances and reliefs.
Usually not, if the property qualifies for full Private Residence Relief. However, CGT may arise where the home was rented out, used exclusively for business purposes or was not your main residence throughout the qualifying ownership period.
Capital Gains Tax is administered by HMRC. Revenue Scotland administers devolved taxes such as Land and Buildings Transaction Tax, but it does not collect Capital Gains Tax.
The annual exempt amount is £3,000 for individuals and £1,500 for most trustees. The allowance generally applies to net chargeable gains for the relevant tax year and cannot be carried forward if unused.
If CGT is due on a UK residential property sale, you generally have 60 days from completion to report and pay it to HMRC. Different deadlines apply to other types of chargeable assets.
The personal allowance taper begins when your income exceeds £100,000, creating an effective 60% tax band for earnings between £100,000...
From 6 April 2027, the SIPP inheritance tax 2027 rules will change how HMRC treats unused pension funds for inheritance...
Selling on eBay is more popular than ever. From part-time resellers to full online shops, thousands of people across the...
In a 2026 tax appeal, the First-tier Tribunal (Tax) upheld HMRC’s view that a written-off director’s loan triggers an income...
VAT bad debt relief can help VAT-registered businesses recover VAT already paid to HMRC when customers fail to settle qualifying...
Rachel Reeves’s property tax plan introduces a series of reforms designed to reshape the UK housing market. The proposals affect...
UK product design companies spend serious money on prototypes, testing and new materials. R&D tax relief for product design companies...
Many people across the UK now want clear answers about HMRC automatic bank deductions. The question has grown urgent due...
The Seed Enterprise Investment Scheme (SEIS) provides significant benefits to investors. However, understanding the concept of being ‘connected’ to the...
The Chancellor, John Healey, will deliver the Autumn Budget 2026 on Wednesday, 28 October, HM Treasury has confirmed. The confirmed...
