With Chancellor John Healey’s first Budget looming on 28/10/2026, speculation is mounting that Capital Gains Tax (CGT) rises will form a key part of revenue-raising measures. Higher borrowing costs amid the Iran conflict and persistent inflation have slashed fiscal headroom, making CGT an attractive target. This comes while Labour honours its manifesto pledge not to increase income tax, National Insurance or VAT for working people.

The urgency is clear: acting before the Budget could save you thousands. This post breaks down the risks in real pounds and pence, shows how to model impacts with tax calculators, and offers practical strategies across asset types and income bands.

Current CGT Rates and Allowances

For the 2025/26 tax year, the annual exempt amount stands at just £3,000. Basic-rate taxpayers pay 18% on gains from residential property and 10% on other assets such as shares or crypto. Higher-rate and additional-rate taxpayers face 24% on property and 20% on other assets.

These rates have already risen from the previous 10%/20% structure for non-property gains. Any further uplift in October could push basic-rate property gains to 20% or higher and additional-rate rates to 25% or 28%.

What a Hike Might Mean in Real Terms

Consider these scenarios based on current rates versus a plausible post-Budget increase (basic-rate 20%, higher/additional 25% for non-property assets).

  • Basic-rate taxpayer selling £50,000 of shares with £20,000 gain: current CGT £2,000; post-hike £4,000 (extra £2,000).
  • Higher-rate taxpayer disposing of £200,000 crypto holding with £80,000 gain: current £16,000; post-hike £20,000 (extra £4,000).
  • Additional-rate taxpayer selling second home with £150,000 gain: current £36,000; post-hike £37,500 (extra £1,500, plus potential interactions with other reliefs).

Overseas investments and buy-to-let (BTL) property could see similar uplifts, with currency fluctuations adding further exposure.

Step-by-Step Guide to Modelling Your Exposure

Use HMRC’s CGT calculator or independent tools such as those from Which? or TaxCalc to run scenarios.

  1. Input your taxable income to confirm your rate band.
  2. Enter the asset type, acquisition cost, disposal proceeds and date.
  3. Apply the £3,000 annual exempt amount.
  4. Model two dates: sale before 28/10/2026 versus after.
  5. Adjust rates to test 2-5 percentage point increases.
  6. Factor in any available reliefs such as Entrepreneurs’ Relief (now Business Asset Disposal Relief at 10% up to £1 million lifetime limit).

Repeat for multiple assets to see cumulative impact.

What-If Examples Across Taxpayers and Assets

Basic-rate taxpayer (£30,000 income)

  • UK shares: £15,000 gain. Current liability £1,200. Post-hike at 12%: £1,800. Consider bed-and-ISA before the Budget to shelter gains.
  • Crypto: £10,000 gain. Current £1,000. Post-hike £1,200. Gifting to spouse or civil partner can use their allowance.

Higher-rate taxpayer (£60,000 income)

  • Overseas shares: £40,000 gain. Current £8,000. Post-hike £10,000. Timing the sale in 2026/27 versus 2027/28 matters if thresholds remain frozen.
  • BTL property: £100,000 gain. Current £24,000. Post-hike £25,000. Review stamp duty or council tax reforms that may compound costs.

Additional-rate taxpayer (£150,000 income)

  • Mixed portfolio (shares + crypto): £120,000 total gain. Current £24,000. Post-hike £30,000. Gift holdover relief on business assets could defer the charge.

Fiscal drag from frozen thresholds means more gains push individuals into higher bands, amplifying the hit. Rising energy bills further squeeze disposable income, making pre-Budget planning essential.

Timing Strategies and Reliefs to Consider

  • Bed-and-ISA: Sell and repurchase inside an ISA before the Budget to reset the base cost.
  • Gifting: Transfer assets to a lower-rate spouse or use gift holdover for qualifying business assets.
  • Deferral: Delay disposals until after the Budget if rates rise less than feared, but watch the triple-lock pension uplift which may affect higher earners’ overall position.
  • Entrepreneurs’ Relief: Maximise the £1 million lifetime limit before any changes.

Monitor for linked property tax reforms that could affect BTL investors beyond CGT.

Actionable Next Steps Before 28/10/2026

Review your portfolio immediately. Run personalised calculations using HMRC or independent CGT tools. Consult a qualified adviser about available reliefs. Track announcements on property taxes that could interact with CGT changes. Early modelling protects your wealth against this under-the-radar threat.

Calculate your exposure today—delaying could cost you £10,000 or more.