What is Capital Gains Tax?
Capital Gains Tax is paid on profits when you dispose of chargeable assets — for example, shares held outside ISAs, second homes or buy‑to‑lets, certain cryptoassets and business assets. Your main home is usually exempt, as are ISAs, UK gilts and most personal cars. Gifts between spouses/civil partners are generally CGT‑neutral.
Rates & allowances (overview)
| Taxpayer | Other assets | Residential property | Carried interest |
|---|---|---|---|
| Basic rate | Lower CGT rate band | 18% | 32% |
| Higher/Additional | Higher CGT rate band | 24% | 32% |
Annual Exempt Amount (AEA): small tax‑free allowance per individual; trusts have half the individual allowance. We’ll confirm the latest figures when we onboard you.
Property disposals — the 60‑day rule
If you sell a UK residential property that gives rise to CGT, you must report and pay the tax within 60 days of completion. Non‑residents must report most UK property disposals within the same deadline, even if no tax is due. We prepare the computation, file the 60‑day return and advise on payments.
Key reliefs & exemptions
We assess eligibility and prepare claims where available.
- Private Residence Relief (PRR) — main home rules, deemed occupation periods
- Lettings Relief — only in limited shared‑occupancy cases since 2020
- Business Asset Disposal Relief (BADR) — reduced CGT rate on qualifying business disposals, subject to lifetime limit
- Investors’ Relief (IR) — reduced rate for qualifying unlisted shares, subject to lifetime limit
- Rollover relief — reinvest business sale proceeds into new qualifying assets
- Holdover relief — defer gains on certain gifts of business assets or to trusts
- Incorporation relief — when transferring a business into a company for shares
- EIS/SEIS deferral/exemption — where conditions are met
Shares & funds — how gains are matched
UK share identification rules match disposals to acquisitions in this order: same‑day purchases, then the next 30‑days (bed‑and‑breakfasting rule), then the Section 104 pooled average. We maintain detailed schedules to get this right for shares, funds and ETFs.
Losses & planning ideas
- Use/bank allowable losses to offset gains now or carry forward
- Spouse/civil partner transfers to use two AEA and bands
- ‘Bed & ISA’ to shelter future growth
- Timing disposals across tax years when feasible
- Charitable gifts of qualifying assets for reliefs
Our CGT process
1) Discovery
We understand your assets, timelines and objectives.
2) Compute & plan
We calculate gains, explore reliefs and timing options.
3) File
We prepare Self Assessment or 60‑day property returns and submit as your agent.
4) Support
We provide payment guidance and stand behind the computation if HMRC asks.
What we need to get started
- Contracts/settlement statements and completion dates
- Purchase cost, enhancement costs and selling fees
- Rental records (for property), or broker statements (for shares/funds)
- Dates lived in the property (for PRR), letting periods and occupancy evidence
- Records of losses carried forward and any previous relief claims
Frequently asked questions
Ready to make a plan?
Private Residence Relief
We review eligibility and occupation periods.
Business disposals (BADR/IR)
Lower rates may apply if conditions are met.
Rollover/Holdover
Defer gains on qualifying reinvestments or gifts.