Capital gains tax (CGT) annual exempt amount

The CGT annual exempt amount for individuals and personal representatives will remain at £3,000 for 2026/27. The annual exempt amount for most trusts will stay at £1,500 (minimum £300).

CGT rates

The lower main rate of CGT will remain at 18% and the higher main rate will remain at 24% for disposals made in 2026/27.

As previously announced, the rate for business asset disposal relief and investor’s relief will increase to 18% from 6 April 2026.

Employee ownership trusts

The CGT relief available on qualifying disposals to employee ownership trusts will be reduced from 100% of the gain to 50% with effect from 26 November 2025.

Inheritance tax (IHT) bands

The IHT nil rate band will remain at £325,000 and the residence nil rate band will stay at £175,000, with its associated taper threshold remaining at £2 million. These levels will be frozen for a further year to the end of 2030/31.

IHT on infected blood compensation payments

Payments made under the Infected Blood Compensation Scheme and Infected Blood Interim Compensation Payment Scheme will be relieved from IHT where the original person eligible for compensation has died before the compensation has been paid.

First living recipients of compensation payments will also have two years in which to gift some or all the compensation payment without an IHT charge.

IHT agricultural and business property reliefs

Any unused £1 million allowance for the 100% rate of agricultural property relief and business property relief will be transferable after death between spouses and civil partners, including where the first death was before 6 April 2026, which echoes the transferability rules for nil rate bands.

IHT on unused pension funds and death benefits

Personal representatives will be able to direct pension scheme administrators to withhold 50% of taxable benefits for up to 15 months and pay the IHT due in certain circumstances. Personal representatives will be discharged from a liability for IHT payment on pensions discovered after they have received clearance from HMRC.

IHT charges for excluded property trusts

With retrospective effect from 6 April 2025, there will be a cap of £5 million on relevant property trust charges for pre-30 October 2024 excluded property trusts.