diff --git a/changelog.d/818-capital-gains-plan-corrections.changed.md b/changelog.d/818-capital-gains-plan-corrections.changed.md
new file mode 100644
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@@ -0,0 +1 @@
+Updated the capital gains distribution page (docs/book/assumptions/capital-gains-distribution-plan.md) for Microcosm UK becoming the certified default dataset, the default retention-rate elasticity of 1, policyengine-uk-data's donor bands, the 27 August 2026 HMRC release and the Microcosm stage details.
diff --git a/docs/book/assumptions/capital-gains-distribution-plan.md b/docs/book/assumptions/capital-gains-distribution-plan.md
index 5e47427100..fd9d8cc558 100644
--- a/docs/book/assumptions/capital-gains-distribution-plan.md
+++ b/docs/book/assumptions/capital-gains-distribution-plan.md
@@ -6,20 +6,29 @@
 (model gains jointly across income groups) and
 [#817](https://github.com/PolicyEngine/policyengine-uk/issues/817)
 (don't impute gains to households with no wealth). The imputation lives
-in the data build, not in this repo. Most of what this page proposed
-in May 2026 has since been built in
-[Microcosm UK](https://github.com/PolicyEngine/microcosm), which builds
-the replacement for the Enhanced FRS. The certified UK default dataset is
-still the Enhanced FRS from
+in the data build, not in this repo. Most of what this page set out to
+fix in May 2026 has since been addressed in
+[Microcosm UK](https://github.com/PolicyEngine/microcosm), by a different
+method from the one it proposed. Microcosm UK 2024-25 replaced the
+Enhanced FRS from
 [policyengine-uk-data](https://github.com/PolicyEngine/policyengine-uk-data)
-(release 1.58.0). What remains is listed at the end of this page.
+as the certified UK default dataset on 21 October 2026
+([policyengine.py#685](https://github.com/PolicyEngine/policyengine.py/pull/685),
+released in policyengine.py 6.10.0); the Enhanced FRS can still be loaded
+by name. What remains is listed at the end of this page.
 ```
 
 ## How the model uses capital gains
 
-`capital_gains_before_response` is a person-level input, uprated by OBR
-per-capita GDP growth. `capital_gains_tax` charges it at the main CGT
-rates, with three components charged at their own rates (all added by
+`capital_gains_before_response` is a person-level input, uprated through
+`gov.economic_assumptions.indices.capital_gains`, which follows OBR
+per-capita GDP growth unless a simulation supplies a
+`CapitalGainsProjection`
+([#2274](https://github.com/PolicyEngine/policyengine-uk/pull/2274); see
+the [capital gains projection guide](https://github.com/PolicyEngine/policyengine-uk/blob/main/docs/capital-gains-projection.md)).
+`capital_gains_tax` charges `capital_gains` (these gains plus any
+behavioural response) at the main CGT rates, with three components
+charged at their own rates (all added by
 [#1861](https://github.com/PolicyEngine/policyengine-uk/pull/1861)):
 
 - `capital_gains_badr`: gains qualifying for Business Asset Disposal
@@ -36,32 +45,39 @@ Behavioural responses: `capital_gains_behavioural_response` changes
 realisations using an elasticity with respect to the retention rate
 (`relative_capital_gains_retention_rate_change`) or the marginal tax
 rate. Gains use `gov.simulation.capital_gains_responses.elasticity`,
-which is 0 by default, so there is no response unless a user sets it.
+which is 1.0 by default (since
+[#2419](https://github.com/PolicyEngine/policyengine-uk/pull/2419),
+October 2026), so a reform that changes a person's marginal rate on gains
+changes their realisations unless a user sets it to 0; the
+[capital gains realisation response](capital-gains-responses.md) page
+explains it.
 When `gov.simulation.capital_gains_responses.separate_badr_elasticity`
 is true (false by default), gains qualifying for BADR respond at
 `badr_elasticity` instead (1.4, the value the OBR used for these gains
-in its January 2025 costing), through `capital_gains_badr_elasticity`.
+in its costing of the October 2024 rate rises, published in January
+2025), through `capital_gains_badr_elasticity`.
 
 ## How the gains are imputed
 
 ### Enhanced FRS: one distribution per income band
 
-The Enhanced FRS (policyengine-uk-data, the certified default) fits a
-spline to the Advani and Summers gains percentiles within each income
-band and draws each household's gains from its band. The spline alone
-cannot produce gains above about £2m, so policyengine-uk-data main (not
-yet in a release) also stacks 30 donor households per HMRC
-size-of-gain band and calibrates to HMRC counts and amounts of gains by
-band. #818 pointed out the problems with the
-band-by-band fit:
-
-- each band's upper tail was fitted on few observations, so the tails
-  were noisy and the joint distribution of income and gains had breaks
-  at band boundaries;
-- two people in the same band drew from the same distribution however
+The Enhanced FRS (policyengine-uk-data, the certified default until
+21 October 2026) fits a spline to the Advani and Summers gains
+percentiles within each income band and draws each household's gains
+from its band. The spline alone cannot produce gains above about £2m, so
+policyengine-uk-data also stacks 30 donor households for each HMRC
+size-of-gain band from £500,000 up (from £12,300 up before release
+1.59.0) and calibrates to HMRC counts and amounts of gains by band. #818
+asks for gains to be modelled across all income groups together rather
+than each group independently, to avoid overfitting. Fitting band by band
+means that:
+
+- each band is fitted on its own, so the joint distribution of income
+  and gains has breaks at band boundaries;
+- two people in the same band draw from the same distribution however
   different their incomes;
-- gains depended on income only, not on wealth, so they could be
-  imputed to households with no assets (#817).
+- gains depend on income only, not on wealth, so they can be imputed to
+  households with no assets (#817).
 
 ### Microcosm UK
 
@@ -70,35 +86,47 @@ Microcosm builds gains in six stages (see the UK
 
 1. **Support split** (`cgt_support_split`). Within each income band of
    HMRC Capital Gains Tax statistics Table 3, the households with the
-   most investable wealth (financial wealth, business wealth and
-   property other than the main home) are split into lighter copies, so
+   most investable wealth (gross financial wealth, corporate wealth such
+   as shares and investment funds, and property other than the main
+   home) are split into lighter copies, so
    that there are enough rows to hold the largest gains.
-2. **Who has gains** (`cgt_incidence_clone`). The set and order of
-   gainers come from the incidence distribution in Advani and Summers
-   (2020), *Capital Gains and UK Inequality* (CAGE Working Paper 465).
+2. **Who might have gains** (`cgt_incidence_clone`). Every household is
+   cloned at half its weight, and the clone's oldest adult draws a prior
+   gain from the Advani and Summers (2020) gains percentiles for their
+   income band (*Capital Gains and UK Inequality*, CAGE Working Paper
+   465).
 3. **How much** (`hmrc_cgt_gains_spine`). Amounts are redrawn so that
    gains match HMRC Table 3 for 2024-25, which counts taxpayers and
    gains **jointly by size of gain and taxable income**, conditioned on
-   Tables 1, 2.1a, 5 and 6.
-4. **Weight anchor** (`cgt_incidence_anchor`). Clones below the annual
-   exempt amount carry more weighted people than HMRC publishes, so the
-   excess weight is moved back to each clone's paired original.
+   Tables 1, 2.1a, 5 and 6. Within each income band, age group and
+   region group, the largest gains go to the gainers ranked highest on
+   household investable wealth (weighted three quarters) and the prior
+   gain (one quarter).
+4. **Weight anchor** (`cgt_incidence_anchor`). After the redraw, clones
+   with gains at or below the annual exempt amount, or with losses,
+   carry far more weight than the Advani and Summers reporter
+   composition implies for the number of liable gainers (HMRC publishes
+   no count of them), so the excess weight is moved back to each clone's
+   paired original.
 5. **Residential property** (`cgt_residential_split`). Gains on UK
    residential property are fitted to Table 8 (2024-25 residential
    property disposals) by splitting households into weighted copies,
    which fills `capital_gains_residential_property`.
-6. **What kind** (`hmrc_cgt_asset_type_spine`). Of the remaining gains,
-   those qualifying for BADR or Investors' Relief are fitted to Table
-   4.1, which fills `capital_gains_badr`, and the rest are given asset
-   types from Table 7 (gains by asset type, 2023-24).
+6. **What kind** (`hmrc_cgt_asset_type_spine`). Of the other liable
+   gainers, those claiming BADR or Investors' Relief are fitted band by
+   band to Table 4.1, which fills `capital_gains_badr`. Every one of them
+   is also given a main asset type from Table 7 (gains by asset type,
+   2023-24), for diagnostics only. Carried interest (HMRC Table 9) is not
+   imputed.
 
-All the HMRC tables come from the Capital Gains Tax statistics July
-2026 release, through Microcosm's pinned Chronicle feed.
+All the HMRC tables come from the 2026 release of the Capital Gains Tax
+statistics (published 27 August 2026), through Microcosm's pinned
+Chronicle feed.
 
 Against #818: gains are now fitted to the published joint distribution
 of gain size and taxable income, not band by band. Against #817:
-the largest gains are placed on the wealthiest households in each
-income band. Microcosm's release checks also include a projection check
+within each income band, the largest gains go mainly to the wealthiest
+households, through the wealth-weighted ranking in stage 3. Microcosm's release checks also include a projection check
 on people just below the annual exempt amount
 (`uk_cgt_projection_entrants` in `gates.json`), so that
 uprating does not push implausible numbers of them into paying CGT in
@@ -110,8 +138,9 @@ later years.
   positive gains sit on households with zero investable wealth. Neither
   repo asserts this directly yet, so #817 should stay open until it
   does.
-- **Close #818** once a Microcosm UK dataset is the certified default
-  and its diagnostics confirm the Table 3 fit; link them from the issue.
+- **Close #818** once the certified Microcosm UK dataset's diagnostics
+  confirm the Table 3 fit (Microcosm UK has been the certified default
+  since 21 October 2026); link them from the issue.
 - **Elasticities by group.** Responses use one main elasticity and one
   BADR elasticity. With the joint distribution in place, an elasticity
   that varies by income or size of gain becomes possible, at the cost