How Business Asset Disposal Relief (BADR) Works: A Guide for Business Owners Posted on 10 November 202610 November 2026 by Farazia Gillani Planning to sell a business or step away from a company you have built requires careful tax and financial preparation. With changes to the Capital Gains Tax and business disposal rules, understanding your options before making an exit decision is increasingly important. This guide provides business owners, company directors and sole traders with a clear overview of Business Asset Disposal Relief conditions, its eligibility requirements and the key considerations when planning a business sale. What Is Business Aself-assessmentsset Disposal Relief? Business Asset Disposal Relief (BADR) is a UK tax relief that can reduce the Capital Gains Tax (CGT) payable when an individual sells all or part of a qualifying business or disposes of qualifying shares in a personal company. It was previously known as Entrepreneurs’ Relief and was renamed on 6 April 2020. The relief is intended to support business owners who have built and developed a business and are ready to sell or close it. However, it is not automatic. Individuals must meet specific ownership, employment and trading conditions to qualify. BADR applies to qualifying disposals by sole traders, business partners and certain company shareholders. The rate and amount of relief available depend on the disposal date and the individual’s previous claims. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation BADR rates 2026-27 The BADR Capital Gains Tax rate has increased in stages. For the 2026/27 tax year, qualifying gains are taxed at 18%. Disposal dateBADR rateOn or before 5 April 202510%6 April 2025 to 5 April 202614%From 6 April 202618% The 18% rate applies to qualifying gains within the available lifetime limit. Any gains that do not qualify for BADR or exceed the applicable limit may be subject to the standard CGT rates. For individuals, the standard CGT rates from 6 April 2026 are generally 18% and 24%, depending on taxable income and the amount of the basic rate band available. BADR Lifetime Cap and Eligibility Rules for Business Owners The lifetime limit determines the total amount of qualifying gains on which an individual can claim BADR. The current lifetime limit is £1 million for qualifying disposals made before 6 April 2027. However, following the 2026 Budget, the government has announced that this limit will fall to £500,000 for qualifying disposals made on or after 6 April 2027. This means that individuals planning to sell a business or qualifying shares should consider the timing of the disposal and any BADR claims they have made previously. The lifetime limit takes account of earlier qualifying gains, so it is not a separate allowance for each sale. Where the total qualifying gains exceed the applicable lifetime limit, the excess is taxed at the normal CGT rates rather than the BADR rate. Business Asset Disposal Relief Qualifying Conditions To qualify for BADR, an individual must meet the relevant conditions for the type of business or asset being sold. In most cases, the required conditions must be satisfied for at least two years before the disposal. For sole traders and business partners: The individual must have owned the business for at least two years before the sale. The business must be a trading business rather than mainly dealing in investments. If the business is closed, qualifying business assets must generally be disposed of within three years. For company shareholders: The company must be the individual’s personal company. The individual must generally hold at least 5% of the ordinary share capital and at least 5% of the voting rights. They must also meet the relevant entitlement test, such as being entitled to at least 5% of distributable profits and assets on winding up or at least 5% of the proceeds if the company is sold. The individual must be an officer or employee of the company, or of a company in the same group. The company must be a trading company or the holding company of a trading group. These conditions generally need to be met for at least two years up to the date of disposal. Special rules can apply to certain EMI share options and other circumstances, so individual circumstances should be reviewed before a claim is made. Capital gains tax, BADR and qualifying disposals The relief is relevant when an individual disposes of qualifying business interests. These may include: Selling all or part of a sole trade. Selling an individual’s interest in a business partnership. Selling shares in a qualifying personal trading company. Disposing of certain business assets after a business has closed. Not every asset used by a business automatically qualifies. For example, a disposal of an asset owned personally but used by a company may need to meet additional conditions, including rules about its use and the individual’s interest in the business. It is important to review the ownership of the asset, the nature of the business and the disposal arrangements before assuming that the relief will apply. Worked Example: Calculating BADR Consider a business owner who sells their qualifying trading business during the 2026/27 tax year, making a net qualifying capital gain of £600,000. They have not previously claimed BADR. Assuming they have their full £3,000 Annual Exempt Amount available and their entire gain would otherwise be taxed at the higher 24% CGT rate, the calculation is as follows. Step 1: Deduct the Annual Exempt Amount £600,000 − £3,000 = £597,000 taxable gain Step 2: Calculate CGT with BADR The BADR rate for qualifying disposals from 6 April 2026 is 18%. £597,000 × 18% = £107,460 CGT payable Step 3: Calculate CGT without BADR Assuming the entire gain would otherwise be subject to the 24% higher CGT rate: £597,000 × 24% = £143,280 CGT payable Step 4: Calculate the potential tax saving £143,280 − £107,460 = £35,820 In this example, claiming BADR reduces the Capital Gains Tax bill by £35,820. The £600,000 gain is within the £1 million lifetime limit applicable to qualifying disposals made before 6 April 2027. This is an illustrative calculation. The actual tax payable depends on the individual’s income, other capital gains, available losses, tax allowances and eligibility for the relief. How to claim Business Asset Disposal Relief BADR must be claimed through the individual’s Self Assessment tax return or by completing the relevant section of the HMRC BADR help sheet. Claims must be made by the applicable deadline. For most disposals, this is 31 January in the second tax year following the tax year in which the disposal took place. You should keep supporting records, including share ownership documents, business accounts, employment details and evidence of the disposal. These records can help demonstrate that the qualifying conditions have been met. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation Get Advice Before Selling Your Business Selling a business or company shares can have significant tax consequences. Reviewing your eligibility, disposal date and previous BADR claims in advance can help you understand the relief available and plan for the tax due. Apex Accountants can help review your circumstances, assess potential BADR eligibility and provide guidance on capital gains tax planning. Contact our team to discuss your business disposal and tax position. FAQs 1. What is the lifetime cap for Business Asset Disposal Relief? The lifetime limit is £1 million per individual for qualifying disposals made before 6 April 2027. It will reduce to £500,000 for qualifying disposals made on or after 6 April 2027. Previous BADR claims count towards the applicable lifetime limit. 2. How long must I own my business before claiming BADR? Generally, you must meet the relevant qualifying conditions for at least two years immediately before the disposal. The specific requirements depend on whether you are selling a sole trade, partnership interest or company shares. 3. Can I claim BADR if I sell shares in my company? Yes. You may qualify if the company is a trading company or the holding company of a trading group, and you meet the personal company, shareholding, voting rights and employment conditions. Generally, you must hold at least 5% of the ordinary share capital and voting rights and satisfy the relevant entitlement test for at least two years before the sale. 4. What is the BADR rate for 2026/27? The Business Asset Disposal Relief rate is 18% for qualifying disposals made from 6 April 2026. The rate was 14% for disposals between 6 April 2025 and 5 April 2026. 5. Can I claim BADR more than once? Yes. You can claim BADR on multiple qualifying disposals, provided your total qualifying gains do not exceed the applicable lifetime limit. Previous claims must be taken into account when calculating the remaining allowance. 6. How do I claim Business Asset Disposal Relief? You can claim through your Self Assessment tax return or by completing the relevant section of HMRC’s BADR help sheet. You must submit the claim by the applicable deadline and retain evidence supporting your eligibility.
Founders’ Relief: Do You Qualify for the 10% CGT Rate? Posted on 4 November 20264 November 2026 by Rida Ahmed Founders’ Relief is a proposed new capital gains tax relief for founders and significant early investors in high-growth UK companies. It would tax qualifying gains on share disposals at 10%, compared with standard CGT rates of 18% and 24%, up to a lifetime limit of £10 million of qualifying gains per person, for disposals made on or after 6 April 2027. It is not law yet: the technical consultation closes at 11:59pm on 30 November 2026. Most owner-managed companies are unlikely to qualify, because the company must have at least £10 million of turnover and at least 15 qualifying full-time-equivalent employees in the accounting period before disposal and must also satisfy at least two of three growth or innovation tests. The individual claimant must also meet separate founder, shareholding, ownership-period and UK-residence conditions. Key takeaways The rate is 10%, capped at £10 million of lifetime qualifying gains per individual, not £10 million of sale proceeds or company value. The relief is still subject to consultation. The consultation closes on 30 November 2026, with legislation planned through Finance Bill 2026/27 and effect for qualifying disposals from 6 April 2027. You must have held at least 25% of the company’s ordinary share capital when the trade, or preparation for it, began, then held the shares or securities for at least five tax years before disposal and been a UK resident for five continuous tax years. The company must have a turnover of at least £10 million and at least 15 qualifying full-time equivalent employees in the relevant accounting period before disposal, plus meet at least two of the three growth or innovation conditions. The government is also reducing the lifetime limit for Business Asset Disposal Relief from £1 million to £500,000 from 6 April 2027. BADR and Investors’ Relief claims made from that date will reduce the available Founders’ Relief lifetime limit. What is Founders’ Relief, and who is it for? Founders’ Relief is a capital gains tax relief that Chancellor John Healey announced at Budget 2026, aimed at founders and significant early investors in high growth, innovative UK companies. The proposed relief would apply a 10% capital gains tax rate to qualifying gains, subject to the lifetime limit and eligibility conditions. The policy intent is to reward people who build companies capable of creating jobs and growth, rather than to reduce the tax bill on any owner-managed business sale. That distinction matters. A founder selling a £2 million or £4 million turnover company falls outside the target of this relief, and the draft conditions make that explicit. The proposed tests are deliberately demanding, so the realistic candidates are founder-led companies that have scaled well past the VAT threshold, with a documented growth or research record. For wider context around the announcement, you can also read our coverage of the Autumn Budget 2026. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation The three individual tests you must meet The Founders’ Relief technical consultation sets out three conditions for the individual, and all three are proposed as mandatory. These tests form the core founders relief eligibility requirements for individual claimants. 25% founding stake You must have held at least 25% of the company’s ordinary share capital when the trading activity for which the company was formed, or preparation for that trade, began. Five tax year holding period You must have held the shares or securities for at least five tax years before disposal. UK residence You must have been a UK resident under the Statutory Residence Test for at least five continuous tax years before disposal. Two practical points are worth flagging. You can meet the 25% test through a holding company of a trading group, and the relief does not restrict itself to the original shares you subscribed for, so shares you still hold at sale can qualify if the conditions hold at that point. Only individuals can claim, so a corporate seller cannot use it. If you were diluted below 25% before trading started, or if the shares were issued later, the proposed design leaves little room. The consultation asks the profession to comment on this area in particular, so the final rules may shift. The company conditions: turnover, employees and trading activity The company itself must pass a separate set of tests, and these are where most otherwise sensible candidates fall out: It must sit within the scope of corporation tax, either a UK resident or trading in the UK through a permanent establishment, with a substantial UK presence across the five accounting periods before disposal. It must be a trading company, or the holding company of a trading group, without substantial non-trading activities. Excluded trading activities follow the Enterprise Investment Scheme list, which covers things like dealing in land, financial services and property development. It must still carry on the trade it was established for, with no major change in the nature of that trade. It must have generated turnover of at least £10 million in the accounting period before the disposal. It must have employed at least 15 qualifying full-time employees in that same period. A qualifying employee works at least 35 hours a week and earns at least the National Minimum Wage. Directors, contractors and agency workers do not count. That last exclusion catches owner-managed companies repeatedly. A business run by two directors with twelve staff does not meet the headcount test, even where the turnover test passes, so no amount of planning at exit will rescue it. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation The growth and innovation tests: two out of three On top of the size tests, the company must demonstrate sustained growth or innovation. It needs to satisfy at least two of the following three, measured across three consecutive accounting periods within the ten years before disposal: Turnover growth. Annual average compound growth in turnover of at least 25%, with turnover of at least £10 million in the final period of that sequence. Headcount growth. Annual average compound growth of at least 25% in qualifying full-time equivalent employees, with at least 15 such employees in the final period. Innovation. The company must have incurred qualifying expenditure, claimed under the R&D tax relief framework, and have claimed R&D tax relief. Simple growth is not enough. A company that grew 25% once or grew steadily from a large base will fail the compound growth test because HMRC measures the rate across three consecutive periods from a specified baseline. Companies that grow through acquisition rather than organically should also expect scrutiny of how they construct the figures. Worked example: what 10% is worth on a £3 million gain Assume a founder sells shares in 2027, making a £3 million gain, has no other gains in the year, and has the full annual exempt amount available. The figures below use the published capital gains tax rates and allowances and are illustrative only. RouteTaxable gainRate appliedCGT payableFounders’ Relief, if every test is met£2,997,00010%£299,700Higher rate CGT, no relief£2,997,00024%£719,280BADR on £500,000, balance at 24%£2,997,00018% then 24%£689,280 Founders’ Relief saves £419,580 against the no-relief position and £389,580 against the BADR route. On a £10 million gain you reach the 10% cap, which is where the lifetime limit becomes the number that matters. Founders with substantial other income should also consider what happens to the Personal Allowance above £100,000 income when reviewing their wider personal tax position. What happens to Business Asset Disposal Relief from April 2027 Founders’ Relief does not replace Business Asset Disposal Relief. BADR continues at a rate of 18% for disposals on or after 6 April 2026, but the lifetime limit falls from £1 million to £500,000 for disposals on or after 6 April 2027. Amounts claimed under BADR and Investors’ Relief from that date also reduce your Founders’ Relief headroom, so the two reliefs share a budget rather than stacking freely. For most owner-managed company owners, BADR remains the relevant relief, and the reduction from £1 million to £500,000 is the change that affects the largest number of people. Timing a sale either side of 6 April 2027 can therefore matter more than eligibility for Founders’ Relief itself. Before a sale, founders may also want to review the tax implications of taking money out of their company through salary, dividends or other extraction methods. Key dates and deadlines DateWhat happens28 October 2026Budget 2026 announces Founders’ Relief and the BADR lifetime limit cut30 November 2026, 11:59pmTechnical consultation closesFinance Bill 2026/27Legislation expected, following consultation responses6 April 2027Proposed start date for qualifying disposals and the date the BADR limit falls to £500,000 Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation What to do now if you might qualify Check your founding shareholding. Dig out the incorporation documents and any early allotments to confirm you held 25% of ordinary share capital, with voting and profit rights, when trading started. If the paperwork leaves the answer unclear, confirm it before you plan around the relief. Test the company conditions against real accounts. You need a turnover of at least £10 million and 15 qualifying full-time employees in the accounting period before disposal, not at some earlier high point. Build the growth evidence now. Three consecutive accounting periods of 25% compound growth, or a documented R&D claim history, needs supporting accounts and claim records, not a narrative. Do not assume eligibility in a valuation or a heads of terms. Model any 2027 or 2028 exit at 24%, then treat the relief as upside. Check the timing against the BADR cut. If you sit close to the current £1 million BADR limit, the difference between completing before and after 6 April 2027 can be significant. If you would like a view on whether a share sale is likely to qualify, our tax services team can review your share history, accounts and R&D records, model the CGT position under both reliefs, and set out a timetable. Book a free consultation with Apex Accountants and Tax Advisors. FAQs Is Founders’ Relief law yet? No. It was announced at Budget 2026 and the technical consultation runs until 30 November 2026. The government intends to legislate in Finance Bill 2026/27 for disposals on or after 6 April 2027, and the conditions could still change. What is the difference between Founders’ Relief and Business Asset Disposal Relief? BADR applies to qualifying disposals by sole traders, partners and shareholders with a 5% stake, at 18% from 6 April 2026, with a £500,000 lifetime limit from 6 April 2027. Founders’ Relief is narrower on eligibility but far more generous on limit: 10% on up to £10 million of gains, for founders and early investors in high growth companies only. Can I claim if I own less than 25% of the company? Under the proposal, no. You must have held 25% of the ordinary share capital with matching rights when trading began. That is a founding test, not a test of your holding at the date of sale. Is the £10 million limit per person or per company? Per individual. Each qualifying founder has their own £10 million lifetime limit of gains, and more than one founder can claim on the same company, but claims under BADR and Investors’ Relief reduce the headroom available. Can Founders’ Relief apply to a partial sale? The proposal covers disposals of shares by a qualifying individual, provided the conditions hold, and it does not limit itself to a sale of your entire holding. A partial disposal can therefore qualify, subject to the company still meeting the conditions at the point of sale. What if my company turnover is under £10 million? Then the company fails the proposed size condition, and the relief would not be available on a disposal, regardless of your shareholding or growth record. BADR may still apply if you meet its separate conditions.
Rachel Reeves’s Property Tax Plan Explained Posted on 16 October 202616 October 2026 by Farazia Gillani Rachel Reeves’s property tax plan introduces a series of reforms designed to reshape the UK housing market. The proposals affect both homeowners and buyers, with changes such as replacing stamp duty, reforming capital gains tax, and modernising council tax. Higher-value properties would contribute more under the plan, aiming to create a fairer system while making property transactions simpler and more accessible. What is Rachel Reeves’ Property Tax Plan? Rachel Reeves, the Chancellor, has announced plans to change property taxation in the UK. Her approach involves phasing out stamp duty, altering capital gains rules, and updating council tax. High-value properties are expected to bear the greatest burden. What is Rachel Reeves’ property tax reform plan? Rachel Reeves’ property tax reform has three main aims: Raise revenue without increasing income tax, VAT, or National Insurance. Make the system fairer by taxing property wealth more directly. Update outdated systems such as council tax and stamp duty. What changes are being proposed? Stamp duty shift: Introduce a proportional property sale tax on homes over £500,000, with rates between 0.54% and 0.81%. Capital gains tax: Remove exemptions for homes above £1.5 million. Gains would be taxed at 18% or 24%. Annual levy: A recurring “mansion tax” on properties over £500,000 remains under discussion. Council tax overhaul: Replace outdated bands with a property-value-based model reflecting current market values. Will stamp duty be abolished? Yes, stamp duty for owner-occupiers could be abolished. A national property sale tax on homes above £500,000 would replace it. This would reduce barriers for buyers and simplify property transactions. Until any reform is enacted, buyers must continue to follow the current Stamp Duty Land Tax payment rules when purchasing qualifying property in England and Northern Ireland. What is the national property tax? A national property tax would replace stamp duty with a centralised sales tax. It applies at the point of sale, not annually. This change forms part of a strategy to tax property wealth more directly. Capital Gains Tax Reform Explained Currently, main homes are exempt from capital gains tax. Under proposed Capital Gains Tax reform, homes above £1.5 million would be taxed. Gains would be charged at 18% for basic rate taxpayers and 24% for higher rate taxpayers. This change forms part of wider property tax reform. Landlords and property investors already face different CGT considerations from owner-occupiers, particularly when disposing of rental property. Our capital gains tax guidance for landlords explains the issues property owners should consider when planning a sale. Is this a “tax raid” on homes? Critics argue that combined CGT changes, sale taxes, and annual levies could raise lifetime property ownership costs, especially in high-value areas. How could homeowners be affected? High-value property owners may face new charges when selling and potential annual levies. Cumulative costs may discourage older homeowners from downsizing. In London, a £1 million property could face nearly £90,000 more tax over twenty years if levies replace stamp duty. How could buyers be affected? If a sale tax replaces stamp duty, buyers could benefit from lower upfront costs. Transactions may become simpler, improving market mobility. However, new levies or property-value taxes may increase overall long-term ownership costs. Regional Impacts of New Property Tax Changes Property tax reform will affect regions differently across the UK. Homeowners in London and the South East could face higher bills, as house prices often exceed £500,000. Annual levies and capital gains Tax changes may increase costs in high-value areas. Regions with property values below the threshold may see little impact. Buyers in lower-value regions could benefit from reduced upfront costs if stamp duty is removed. Updating council tax with modern property values may reduce unfair burdens in lower-value areas. Effects of Property Tax Changes in New Markets New and emerging housing markets outside traditional hotspots could see positive effects. Reduced upfront costs, such as the removal of stamp duty, could attract buyers to areas in the Midlands and North. This shift may help rebalance demand away from overheated markets like London. Developers in smaller towns and expanding cities may also benefit, as property transactions become more affordable in locations previously overlooked. How could property tax changes affect first-time buyers? First-time buyers could gain the most if stamp duty is abolished. Lower upfront costs would make it easier to enter the housing market. Simpler rules may also reduce confusion and speed up property transactions. However, if long-term levies increase, the benefit may shrink over time. What are the potential benefits of reforming property tax? Reforming property tax could bring several advantages. A fairer system would reduce the burden on households in lower-value regions. Modernising outdated bands would align taxes with today’s property market. Removing upfront costs like stamp duty would also improve housing mobility for buyers. Overall, reform could create a more balanced, transparent, and efficient property tax structure. What are the concerns about an annual levy on high-value properties? An annual levy, often called a “mansion tax”, could increase long-term ownership costs for high-value homes. Older homeowners and pensioners who own property but have limited income may feel squeezed. Critics argue that repeated yearly charges are less fair than one-off sales taxes. Supporters claim it spreads the tax burden more evenly across time. How might property tax changes impact pensioners? Property tax reform may affect pensioners differently from younger homeowners. Older homeowners with valuable properties but limited cash flow may struggle with new levies or higher council tax. Homeowners reviewing how property wealth fits into their wider estate plans may also benefit from considering inheritance tax planning alongside any future property tax changes. Downsizing could become less attractive if sales trigger capital gains tax. At the same time, modernising the council tax could relieve pressure in regions where pensioners currently overpay relative to property values. Latest Debates on Rachel Reeves’ Property Tax Reforms Public debate around Rachel Reeves’ property tax reforms is growing. Supporters believe that taxing property wealth more fairly would modernise the system and improve housing mobility. Critics argue that these reforms could hit long-term homeowners hardest, particularly older generations living in high-value homes. Some economists view the proposals as a practical way for the Chancellor to raise revenue without increasing income tax, VAT, or National Insurance. Others warn that the changes could introduce instability into the housing market. Key points from the debate include: Supporters stress fairness and better housing mobility. Critics highlight risks to long-term homeowners. Economists see reforms as a revenue solution without raising income-related taxes. Concerns remain about potential housing market instability. Latest Rachel Reeves News on Property Tax The most recent Rachel Reeves news on property tax highlights major reforms currently under consideration. The government is reviewing a national property sale tax as a possible replacement for stamp duty, while it also considers changes to capital gains tax on high-value homes. These proposals would affect high-end homeowners the most if they move forward. At the same time, ministers continue to discuss council tax reform as part of the long-term agenda, although nationwide implementation may take longer due to its complexity. What is Rachel Reeves’ stance on stamp duty? Rachel Reeves supports abolishing stamp duty. She favours a proportional sale tax for higher-value homes. This would cut upfront costs for many buyers. What about capital gains tax under Reeves? The key change would be the removal of CGT exemptions for homes above £1.5 million. More properties would fall within CGT rules, and this aligns with the proposed capital gains tax changes 2025, which aim to increase fairness and raise additional revenue from high-value properties. What do these reforms mean for buyers? The proposed reforms could reduce upfront costs for buyers if stamp duty is abolished, making property purchases more accessible. This change could also boost housing transactions and improve market mobility by encouraging more people to buy and sell. However, buyers of expensive homes may face higher long-term ownership costs through additional levies or revised tax rules. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation Why focus on council tax? Council tax is still based on outdated property valuations from the early 1990s, which makes the system increasingly unfair. Reforming it to reflect current property values would create a fairer and more accurate approach. Such a change would bring council tax in line with today’s housing market and distribute the burden more evenly across regions. Conclusion Rachel Reeves’ property tax proposals mark a major shift in how the UK taxes property wealth. Buyers could gain from reduced upfront costs if the government removes stamp duty, while the housing market may benefit from increased activity. Homeowners with high-value properties may face higher long-term liabilities through capital gains tax changes 2025, new annual levies, or updated council tax rules. The overall impact will depend on how the government implements these reforms, but they signal a clear move towards taxing property wealth more directly to raise revenue and modernise the system. These reforms signal a clear move towards directly taxing property wealth to raise revenue and modernise the system. How Apex Accountants Can Help At Apex Accountants, we guide clients through complex tax reforms with tailored advice and planning. With over 20 years of experience, our team supports homeowners, buyers, and investors in understanding how new property tax rules may affect them. From capital gains tax services to council tax strategies, we provide proactive solutions to help you stay compliant and protect your financial position. Book a free consultation today and get expert advice tailored to your needs. FAQs What Are the Current UK Property Tax Changes? Current property-tax changes include higher Stamp Duty Land Tax rates for additional residential properties and the planned High Value Council Tax Surcharge for residential properties in England worth £2 million or more. The surcharge was announced at Budget 2025 and was subject to consultation in 2026. Other proposals should be treated as proposals until they are enacted. Do Landlords Pay More Tax After the Reforms? It depends on the landlord’s circumstances. Landlords can face higher SDLT when buying additional properties, while gains on residential-property disposals are generally subject to Capital Gains Tax at 18% or 24%, depending on the taxpayer’s income position. Planning the timing of disposals, ownership structure and available reliefs can affect the final tax liability. Is a Wealth Tax Coming to the UK? There is currently no general annual tax on an individual’s total net wealth in the UK. Instead, property and investment wealth is taxed through existing measures such as Capital Gains Tax, Inheritance Tax, SDLT and council tax. The government has separately announced a high-value council tax surcharge for residential properties in England worth £2 million or more, but that is not the same as a general wealth tax.
Gifts to Spouse or Charity: Capital Gains Tax Rules Posted on 2 October 20268 October 2026 by Farazia Gillani Gifts to spouse or charity can receive favourable capital gains tax treatment, but the rules depend on who receives the asset and the circumstances of the transfer. A gift can still count as a disposal for CGT purposes, so transferring property, shares or other valuable assets without understanding the tax position can create unexpected consequences. Special rules apply when assets pass between spouses or civil partners and when assets are donated to charity. Gifts made to other people are generally treated differently. Capital Gains Tax on Gifts to Spouse In most cases, capital gains tax on gifts to a spouse or civil partner is not charged immediately where the couple are living together for CGT purposes. Under the Capital Gains Tax rules for gifts to a spouse or civil partner, assets transferred between spouses or civil partners are generally treated on a no-gain/no-loss basis. This means the transfer itself does not normally create an immediate taxable gain. Instead, the receiving spouse effectively inherits the original acquisition cost of the asset. For example, if one spouse bought shares for £20,000 and later transferred them to the other spouse when they were worth £35,000, the transfer would normally not create an immediate CGT charge. If the receiving spouse later sold those shares, their gain would generally be calculated using the original £20,000 acquisition cost. This makes accurate records particularly important. How the No Gain No Loss Spouse Rule Works The no gain, no loss spouse rule means that the transfer is treated as taking place at a value that creates neither a taxable gain nor an allowable loss for the person transferring the asset. However, this treatment does not necessarily remove capital gains tax permanently. Instead, the potential gain effectively carries over to the spouse or civil partner receiving the asset. If they later sell or otherwise dispose of it, they may have to calculate CGT using the original acquisition cost. The rules can also continue after permanent separation. Under the current CGT rules for spouses, civil partners and separation, qualifying transfers can generally receive no-gain/no-loss treatment until the earlier of: the end of the third tax year after the tax year in which the couple stopped living together, or the date of divorce, dissolution or annulment. Transfers made under a formal divorce or separation agreement or court order can qualify for no-gain/no-loss treatment without that time limit. These rules are particularly important where property, investments or business assets are being divided following separation. Capital Gains Tax on Gifts to Charity The treatment of capital gains tax on gifts to charity is generally favourable. Individuals do not normally have to pay capital gains tax when they give an asset outright to a qualifying charity. This can apply to assets such as: land property shares certain investments The rules can differ if the charity pays something for the asset. If you sell an asset to a charity for more than you originally paid but for less than its market value, the gain is generally calculated using the amount the charity actually pays rather than the full market value. For example, if an asset originally cost £20,000, is worth £50,000 and is sold to a charity for £25,000, the CGT calculation would generally be based on the £25,000 received rather than the £50,000 market value. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation Can You Get Other Tax Relief When Donating Assets? Yes. Certain gifts of land, property and shares can also qualify for income tax relief as well as capital gains tax relief. The precise treatment depends on the asset being donated and whether the charity meets the relevant conditions. Because this overlaps with the wider rules for charitable giving, our separate guide explains how to claim tax relief on charitable donations in the UK, including Gift Aid, Payroll Giving and gifts of land, property and shares. This keeps the focus of this article specifically on asset transfers and capital gains tax. What Happens When You Give Assets to Someone Else? The favourable spouse and charity rules do not automatically apply when you give an asset to a child, relative, friend or another individual. For capital gains tax purposes, a gift to another person may be treated as though the asset had been disposed of at its market value, even where no money actually changes hands. This can create a taxable gain if the asset has increased significantly in value since you acquired it. In certain situations, gift hold-over relief may allow CGT to be deferred on qualifying business assets or certain shares. Instead of paying the tax immediately, the gain is effectively carried forward and may become taxable when the recipient later disposes of the asset. Current Capital Gains Tax Rates for 2026/27 For the 2026/27 tax year, the Annual Exempt Amount for most individuals is £3,000. From 6 April 2026, the main capital gains tax rates for individuals are: 18% where gains fall within the unused basic-rate band 24% on gains falling above the basic-rate band The actual CGT payable depends on your taxable income, total gains, available losses and any applicable reliefs. These rates matter particularly where a transfer does not qualify for the special spouse or charity rules. Why Timing Matters When Transferring Assets Timing can significantly affect the CGT outcome. A transfer made between spouses while the no-gain/no-loss rules apply may produce a very different result from a transfer made after those rules have ceased to apply. Similarly, giving an asset directly to charity can have different consequences from selling it first and donating the cash. Before making gifts to spouse or charity, it is therefore worth checking: who legally and beneficially owns the asset its original acquisition cost its current market value whether consideration is being paid whether the couple are living together or separated whether the transfer forms part of a formal separation agreement whether any CGT relief applies what may happen when the recipient later disposes of the asset Planning before the transfer is usually much easier than correcting an unexpected tax position afterwards. How Apex Accountants Can Help Asset transfers can involve more than one area of tax, particularly where property, shares, business interests or separation are involved. Apex Accountants can help you: Establish the original base cost of an asset calculate potential gains review capital gains tax on gifts to spouse Apply the no gain, no loss spouse rules correctly assess capital gains tax on gifts to charity Consider whether Gift Hold-Over Relief may apply review the tax consequences of separation or divorce Keep the records needed for a future disposal report taxable gains correctly to HMRC Our capital gains tax services provide support with CGT calculations, planning, reliefs and reporting. Where a transfer forms part of your wider personal financial position, our personal tax services can also help you consider how CGT interacts with your other tax obligations. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation Frequently Asked Questions Do I pay Capital Gains Tax when I give an asset to my spouse? Usually, there is no immediate CGT charge when qualifying transfers are made between spouses or civil partners. The asset normally transfers on a no-gain/no-loss basis, meaning the recipient takes over the relevant historic cost for future CGT calculations. What does no gain no loss spouse mean? The no gain no loss spouse rule means the person transferring the asset is treated as making neither a gain nor a loss. The potential gain generally carries over to the receiving spouse and may become relevant when they eventually dispose of the asset. What happens if my spouse later sells the asset? The spouse or civil partner receiving the asset may have to pay CGT when they later sell it. Their gain generally takes account of the amount originally paid for the asset rather than its value when it was transferred between spouses. Is there a capital gains tax on gifts to charity? Generally, capital gains tax on gifts to charity is not payable when assets are given outright to a qualifying charity. Different calculations may apply if the charity purchases the asset from you. Can I give property or shares to charity without paying CGT? Qualifying gifts of land, property and shares to charity can normally receive CGT relief. They may also qualify for income tax relief, depending on the circumstances. Does CGT apply when I give an asset to my child? Potentially, yes. The special spouse rules generally do not apply to gifts made to children or most other individuals. The disposal may instead be assessed using market value, although reliefs such as Gift Hold-Over Relief may sometimes be available. What happens to CGT when spouses separate? Current rules allow qualifying no-gain/no-loss transfers for a period following permanent separation. Generally, the treatment can continue until the earlier of the end of the third tax year following the tax year of separation or the legal end of the marriage or civil partnership. Certain transfers under formal agreements or court orders can qualify without this time limit. Conclusion The Capital Gains Tax treatment of gifts to spouse or charity can be favourable, but it is important to understand what the relief actually does. Transfers between spouses and civil partners usually defer an immediate gain through no-gain/no-loss treatment rather than removing the underlying gain permanently. Qualifying charitable gifts, meanwhile, can receive wider CGT relief and, in some cases, additional income tax relief. Where valuable property, shares or business assets are involved, getting advice before completing the transfer can help you understand the tax consequences, preserve the correct records and make use of any reliefs available.
HMRC’s First Cryptoasset Statistics Show Why Records Matter Posted on 28 August 20269 November 2026 by Farazia Gillani Capital Gains Tax is becoming increasingly important for UK crypto investors as HMRC gains access to more detailed information about cryptoasset activity. An investor who sold Bitcoin, swapped tokens or used cryptoassets to pay for goods may already have a reporting obligation, while staking, mining or lending rewards can create separate Income Tax issues. On 27 August 2026, HMRC published its first official statistics on taxable cryptoasset gains. The figures show that 17,600 individuals made Capital Gains Tax-liable cryptoasset disposals in 2024/25. Collectively, they reported £13.8 billion of disposal proceeds and £1.38 billion of gains. These are official statistics based on reported taxable activity. They are not an estimate of the total number of UK crypto investors or the tax liability of every cryptoasset holder. For a broader explanation of how UK tax rules apply to disposals, income and undeclared liabilities, see Apex Accountants’ guide to tax liabilities from cryptoassets. Key Takeaways 17,600 individuals made Capital Gains Tax-liable cryptoasset disposals in 2024/25. Those taxpayers reported £13.8 billion of disposal proceeds and £1.38 billion of gains. 240 people reported more than £1 million of cryptoasset capital gains, accounting for £717 million of gains between them. The UK’s Cryptoasset Reporting Framework rules began from 1 January 2026, with the first provider reports due by 31 May 2027. HMRC says it will start receiving cryptoasset provider data from 2027. For the 2025/26 tax year, the Self Assessment filing and payment deadline is 31 January 2027 where a return is required. What Did HMRC’s New Cryptoasset Data Actually Show? HMRC’s 2026 release is the first annual Capital Gains Tax statistics publication to include a specific cryptoasset breakdown. The supporting Capital Gains Tax statistics now include a dedicated Table 10 covering cryptoasset gains and disposal proceeds. HMRC reported that the 17,600 individuals with Capital Gains Tax-liable cryptoasset disposals had average gains of approximately £78,000 each. However, that average is affected by taxpayers with particularly large gains. HMRC also reported that around 87% of individuals reporting cryptoasset gains were male and around 13% were female. The £13.8 billion figure relates to disposal proceeds, not taxable profit. A disposal can arise without money being withdrawn to a UK bank account. HMRC’s guidance on selling and disposing of cryptoassets explains that relevant disposals can include selling tokens, exchanging one cryptoasset for another, using cryptoassets to buy goods or services, and giving cryptoassets away in circumstances where no exemption applies. The figures are rounded and may not sum precisely. When Does Crypto Activity Create Capital Gains Tax? Capital Gains Tax may arise when an individual disposes of cryptoassets and the disposal produces a chargeable gain. In broad terms, the gain is calculated by comparing the disposal value with the allowable acquisition cost and other allowable costs, while applying the relevant matching and pooling rules. Common cryptoasset disposal events include: selling Bitcoin, Ethereum or another token for pounds or another currency; exchanging one cryptoasset for another; using cryptoassets to pay for goods or services; and giving cryptoassets away, except where an exemption or relief applies, such as certain transfers to a spouse or civil partner. A transfer between wallets that you beneficially own is generally not a disposal simply because the cryptoasset has moved. HMRC’s Cryptoassets Manual on disposals confirms that there is no disposal where the individual retains beneficial ownership throughout the transfer. The calculation becomes more difficult where an investor has made repeated purchases and disposals at different prices. Exchange statements can help, but HMRC warns that platform reports are not themselves UK tax calculations and may not track pooled costs. An increase in the market value of a cryptoasset does not by itself create Capital Gains Tax. A tax point generally arises on a disposal. However, cryptoassets received through employment, mining, staking, lending or business activity can have different treatment. HMRC’s Cryptoassets Manual explains when Income Tax, National Insurance or Capital Gains Tax may apply depending on the facts. For taxpayers who need help determining the correct treatment of disposals and gains, Apex Accountants’ Capital Gains Tax services cover cryptoassets as well as other investments and assets. What Does CARF Mean for UK Crypto Investors? The Cryptoasset Reporting Framework, or CARF, is an international reporting standard designed to improve tax transparency and the exchange of cryptoasset information between tax authorities. The UK’s CARF rules commenced on 1 January 2026. Reporting cryptoasset service providers must collect relevant user and transaction information, carry out due diligence and retain the records required under the framework. HMRC’s CARF reporting guidance for cryptoasset service providers states that the first reports must be submitted between 1 January and 31 May 2027, covering the calendar year from 1 January to 31 December 2026. HMRC therefore expects to start receiving this provider data from 2027. CARF does not introduce a new tax on cryptoassets. It changes the amount of information available to HMRC and other participating tax authorities. Providers will report user details and summaries of relevant transactions. HMRC says a provider that fails to follow the reporting rules may face penalties of up to £300 per user. UK cryptoasset users are also required to provide accurate identifying information to service providers. HMRC’s guidance for cryptoasset users explains what information may be requested and how it can be shared between participating tax authorities. The practical point for investors is that provider data may not tell the whole story. A transfer between two wallets owned by the same person can look very different from a taxable disposal unless records connect both sides of the transaction. The taxpayer therefore still needs a complete and coherent audit trail. What Records Should UK Crypto Investors Keep? HMRC places responsibility on taxpayers to keep their own cryptoasset records. Exchanges may retain transaction data for only a limited period, and a platform may no longer exist when a tax return or HMRC enquiry is dealt with. HMRC’s cryptoasset record-keeping guidance says records should include information such as: the type of cryptoasset; the date of each transaction; whether the cryptoasset was bought or sold; the number of units involved; the sterling value of the transaction at the transaction date; the cumulative number of investment units held; relevant bank statements; and wallet addresses where needed. It is also sensible to retain exchange exports, transaction IDs, fee information and evidence showing transfers between wallets or platforms. Cryptoasset values must be calculated in pounds sterling for UK tax purposes. Where an exchange does not provide a sterling value, HMRC expects an appropriate exchange rate and a consistent valuation method. Keep evidence of the method used. Investors should separate at least four broad types of activity: purchases and sales; token-to-token exchanges; transfers between wallets or accounts; and income events such as staking, mining, employment rewards or lending returns. Do not assume a platform’s annual summary is a complete UK tax calculation. It may omit activity held elsewhere, misclassify transfers or fail to apply the UK pooling rules correctly. What Is the Deadline for Declaring Crypto Income or Gains? For the 2025/26 tax year, the normal online Self Assessment filing deadline is 31 January 2027, and tax due through Self Assessment is generally payable by the same date. For Capital Gains Tax, the annual exempt amount for individuals is £3,000 for 2025/26. HMRC’s Capital Gains Tax rates and allowances confirm that amount. The reporting position is not determined by the £3,000 allowance alone. If you are already registered for Self Assessment, GOV.UK says you must report your gains on the return if the total amount for which you disposed of chargeable assets is more than £50,000, even if your gains are below the annual exempt amount. Cryptoasset income is different from capital gains and may need to be reported under the appropriate Income Tax provisions. HMRC’s 27 August 2026 release notes that there is a dedicated Self Assessment section for cryptoasset capital gains, but no equivalent dedicated cryptoasset income box for activities such as mining or staking. If you have unpaid cryptoasset tax from older tax years, HMRC’s Cryptoasset Disclosure Service may be relevant. However, HMRC says income or gains from the current or previous tax year should normally be reported through the Self Assessment tax return rather than the disclosure service. What Should Someone Do If Their Crypto Records Are Incomplete? Start by listing every exchange, wallet and protocol used during the relevant tax years. Download available transaction histories and identify missing periods, duplicated entries, transfers and transactions recorded in different currencies. Next, classify each transaction correctly. A token sale or token-to-token exchange may be a capital disposal. Staking rewards may be taxable as income when received, depending on the facts, and a later disposal of the same tokens can create a separate Capital Gains Tax calculation. Where records cannot be fully reconciled, keep a written audit trail of the assumptions, source data and valuation methods used. A documented reconstruction is more defensible than unexplained figures copied from a single exchange summary. If earlier tax returns may contain omissions, it is sensible to establish the correct figures and disclosure route before contacting HMRC. Where an HMRC enquiry or compliance check has already begun, specialist HMRC tax investigation support may help with the response and supporting evidence. How Could HMRC’s New Data Affect Taxpayers? The new statistics give HMRC a clearer baseline for understanding the cryptoasset gains already being reported through Self Assessment. CARF will add another source of information from cryptoasset service providers. This does not mean every investor will receive an enquiry, and provider information does not by itself prove that tax has been underpaid. It does mean that discrepancies between a taxpayer’s return, exchange data and banking records may become easier for HMRC to identify. HMRC also reported that its cryptoasset education and compliance activity generated an estimated additional £168 million of Capital Gains Tax in 2024/25. HMRC describes this as an estimate of the tax generated as a direct result of its compliance and education activity, not an estimate of any individual investor’s liability. What Should Crypto Investors Do Before 31 January 2027? A practical review should include five steps: List every exchange, wallet and protocol used. Download and preserve complete transaction data. Separate taxable disposals from transfers and income receipts. Calculate gains, losses and income using UK tax rules and sterling values. Reconcile the resulting figures to bank movements and the Self Assessment return. Investors should also review earlier years for unreported income or gains. If an omission is found, check whether it should be corrected through Self Assessment or HMRC’s Cryptoasset Disclosure Service before making a submission. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation Frequently Asked Questions Do I Pay Tax When I Swap One Cryptoasset for Another? A token-to-token exchange can be a disposal for UK Capital Gains Tax purposes. The calculation requires a sterling value at the time of the exchange and the allowable cost of the cryptoasset disposed of. Does Moving Crypto Between My Own Wallets Create a Gain? Generally, no. HMRC says there is no disposal where you retain beneficial ownership of the cryptoasset throughout the transfer. Records should still connect the sending and receiving wallets so the movement can be distinguished from a sale or transfer to another person. Are Staking Rewards Taxed as Capital Gains? Not necessarily. HMRC says staking rewards can be taxable as income when received. Whether the activity amounts to a trade depends on the facts. If you retain the rewarded tokens and later dispose of them, that later disposal can create a separate Capital Gains Tax gain or loss. Will HMRC Automatically Tax Me When an Exchange Reports My Details? No. CARF provider data does not itself calculate your tax liability. HMRC can use the information to compare reported activity with tax records, but the taxpayer remains responsible for declaring the correct income and gains. Can an Accountant Help If I Have Used Several Exchanges? Yes. An adviser can help consolidate transaction histories, distinguish transfers from disposals, calculate pooled costs and gains, review income events and prepare the relevant Self Assessment or disclosure figures. The reliability of the result still depends on the quality and completeness of the underlying records. Apex Accountants’ View HMRC’s new statistics are best treated as a prompt to review records rather than a reason for panic. The important question is not simply how many transactions appear on an exchange statement, but what each transaction represents under UK tax rules. Apex Accountants supports individuals and businesses with cryptoasset tax calculations, Capital Gains Tax reporting, income treatment and HMRC compliance. Where records span several exchanges, wallets or tax years, the work can include reconstructing activity and documenting the assumptions behind the calculation. Apex Accountants has more than 20 years of UK accounting and tax experience, with professionals connected to recognised bodies including ACCA, ICAEW and ATT. The aim is to produce an evidence-led tax position that can be explained if HMRC later asks how the figures were prepared.
Capital Gains Tax for landlords reshapes the buy-to-let sell-off Posted on 25 June 202626 June 2026 by Farazia Gillani Capital Gains Tax for landlords is now a decisive factor in whether owners hold, sell, refinance or restructure property portfolios. With borrowing costs testing margins, mortgage interest relief restricted, and tax allowances thinner than before, many landlords now treat disposal planning with the discipline once reserved for acquisition strategy. The sale decision now starts with Capital Gains Tax for landlords For individual landlords, a sale of a buy-to-let property can trigger Capital Gains Tax on the gain after allowable costs, losses and reliefs. The annual exempt amount is £3,000 for individuals and £1,500 for most trusts. That leaves far less shelter than long-term owners expected. Residential property gains are taxed at 18% if they fall within the basic rate band and at 24% above it. Other taxable income can push more of the gain into the higher rate band. Salary, rental profit, pension income or dividends can change the final bill. This is why timing matters. A sale completed late in the tax year may leave little scope for Capital Gains Tax planning for landlords, including income planning, loss use, ownership checks and the 60-day property return. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation Why Capital Gains Tax planning for landlords shapes exit plans Landlords rarely let Capital Gains Tax alone drive their decision. Tax tends to be the final test on a wider commercial picture. Several pressures now meet at the same point: mortgage interest relief is restricted to a basic rate tax credit additional dwellings in England and Northern Ireland face a 5 percentage point SDLT surcharge repairs, licensing, energy standards and void periods affect net yield the smaller annual exempt amount brings more gains into charge payment deadlines arrive quickly after completion Some landlords are selling weaker units, while others are seeking buy-to-let landlord tax advice before deciding whether to sell or hold. Others are delaying sales to control tax-year exposure. More owners are modelling incorporation, family transfers or staged disposals. Each route can carry tax, legal and lending consequences, so the arithmetic needs care. The 60-day clock leaves little room for error UK residential property disposals must be reported to HMRC and any Capital Gains Tax due paid within 60 days of completion. This is a short deadline for landlords who still need purchase records, improvement invoices, legal fees, valuations and ownership history. Common risk areas include: treating repairs and capital improvements incorrectly missing periods where Private Residence Relief may apply failing to claim allowable losses using sale proceeds before tax has been reserved assuming Self Assessment alone deals with the disposal Private Residence Relief can reduce the gain where a property was the owner’s only or main home during part of ownership. However, relief is not automatic. Letting history, occupation periods and shared ownership can alter the calculation. A portfolio decision, not just a tax return The sharper question is whether the property still earns its place after tax. A gain crystallised today may fund debt reduction, pension contributions, business investment or a move into commercial assets. Equally, selling only to cut tax uncertainty can be costly if the property still produces strong cash flow. Good planning starts before the estate agent is appointed, especially where buy-to-let landlord tax advice can shape timing, relief claims and cash reserves. Landlords should review the expected gain, current year taxable income, unused losses, ownership structure, completion date, cash needed for the 60-day payment and whether the property was ever a main residence. This review can change the final decision. It may support a sale, delay completion, split disposals across tax years, or keep the asset. Why you need Apex Accountants & Tax Advisors Apex Accountants & Tax Advisors supports landlords who need clear advice before selling. Our team can calculate expected Capital Gains Tax, review reliefs, prepare 60-day reports, check rental accounts, advise on ownership structure and model disposal dates. For landlords with several properties, the wider picture matters. A single sale can affect Self Assessment, payments on account, finance planning and future investment strategy. Careful reporting reduces HMRC risk and gives landlords stronger control over cash flow. For practical advice before listing or completing a property sale, contact Apex Accountants today or book a free consultation. Get Free Consultation Call Anytime 0203 883 4777 Get Free Consultation FAQs Do landlords always pay Capital Gains Tax when selling a rental property? No. Tax is due only on a chargeable gain after allowable costs, losses, the annual exemption and any available reliefs. When must a landlord report a UK residential property sale? Most UK residential property sales with Capital Gains Tax due must be reported and paid within 60 days of completion. Can Private Residence Relief reduce tax on a former home? Yes. It may apply if the property was the owner’s only or main residence for part of the period of ownership. Can selling in a different tax year reduce the bill? It can. Income levels, losses, ownership changes and annual exemptions may affect the result. Advice should be taken before exchange.
Investors Are At Risk Of Tax Fines Due To The HMRC Capital Gains Tax Glitch Posted on 12 January 202621 July 2026 by Malaika Sohail A government system error could leave thousands of UK investors facing unexpected tax penalties this year. The problem stems from the HMRC Capital Gains Tax glitch, where online self-assessment forms are showing incorrect CGT figures. HMRC failed to correctly update its online tools after introducing rate changes in late 2024. Many investors using the portal have unknowingly submitted returns with inaccurate tax calculations. This issue has already resulted in tax fines for investors, even when the mistake was caused by HMRC’s systems. Despite the glitch, HMRC continues to hold individuals accountable for any underpayment or omission. In this article, we elucidate the issues, identify the individuals impacted, and suggest the appropriate course of action. We also outline how Apex Accountants can help you submit an accurate return, avoid penalties, and protect your financial position. What Is the HMRC Capital Gains Tax Glitch? The issue began after HMRC made updates following CGT rate changes announced in late 2024. However, technical errors mean some self-assessment forms are showing incorrect CGT calculations. The main problems include: Incorrect CGT liabilities showing on some tax returns Errors in auto-filled figures within HMRC’s online forms Risk of underpayment or overpayment Potential late filing penalties due to delayed corrections HMRC has acknowledged the issue, but many forms remain unfixed. The longer it remains unresolved, the higher the risk of HMRC penalties for capital gains submitted in error. Who Is at Risk? This issue may impact: Individual investors disposing of property, shares, or crypto Taxpayers using HMRC’s online self-assessment portal Anyone filing for the 2024–25 tax year without a manual review People relying on HMRC’s CGT calculator without professional checks Even if the return is submitted on time, HMRC may still issue tax fines for investors who underreport gains due to faulty system outputs. Key Risks to Investors Here’s how the glitch could affect you: Incorrect CGT bills Interest and penalties on unpaid tax Compliance checks triggered by mismatches Time-consuming amendments and resubmissions Missed reliefs or incorrect loss reporting Even small errors can result in significant HMRC penalties for capital gains, especially if not corrected before the deadline. What You Should Do To protect yourself, follow these steps: Check CGT figures manually using current tax rates Review disposal dates, purchase costs, and reliefs used Use updated software or a professional tax adviser Amend any already submitted return if it contains errors Keep accurate records for all disposals and gains Submitting a correct return remains your responsibility—even if HMRC tools are faulty. Why Choose Apex Accountants At Apex Accountants, we specialise in helping investors file accurate, compliant tax returns—even when HMRC systems fall short. Our team knows what it takes to navigate Capital Gains Tax, and we work with individuals, landlords, and high-net-worth clients across the UK to reduce the risk of fines, penalties, and unwanted HMRC enquiries. We don’t just process numbers—we help you make sense of them. Whether you’re reporting share disposals, crypto transactions, or second home sales, we provide practical, hands-on support at every stage of your tax journey. Here’s how we help: Accurate Capital Gains Tax Reviews We calculate gains and losses correctly using up-to-date rates and identify all eligible reliefs, including Private Residence Relief and Business Asset Disposal Relief. Self-Assessment Filing with Confidence We prepare and submit your return on your behalf, review for HMRC system errors, and keep you informed throughout the process. HMRC Dispute Support From investigating miscalculations to appealing unfair penalties, we represent you with full technical support and clear communication. Specialist Advice for Property and Crypto Investors We provide tax guidance tailored to those dealing with residential property gains or complex digital asset portfolios. Digital Filing and MTD Compliance Our team helps you comply with Making Tax Digital and stay ahead of HMRC’s evolving digital requirements. With Apex Accountants, you benefit from deep technical expertise, clear communication, and a responsive service built around your needs. Our advice is proactive, our support is ongoing, and our aim is always to protect your financial interests. Speak to us today to get expert support with your Capital Gains Tax and investment reporting. FAQs What caused the HMRC glitch? The glitch occurred after CGT changes were introduced but not properly applied in HMRC’s online forms. Who is affected by the error? Anyone using HMRC’s self-assessment portal to report capital gains for the 2024–25 tax year may be at risk. Can I fix a return if I’ve already submitted it? Yes. You can file an amended return within the correction window or request a review if penalties are charged. Will HMRC waive fines if it’s their fault? Not automatically. You are still responsible for accurate returns. You may need to appeal any fine. How do I check if my figures are wrong? Compare your CGT calculations manually or consult a qualified accountant for review. Is this glitch affecting crypto investors? Yes. Reporting capital gains from digital assets through HMRC’s online tools also impacts them. Can I claim CGT losses during this period? Yes, provided the losses are recorded and submitted correctly. These can offset gains and reduce liability. When is the self-assessment deadline? For the 2024–25 tax year, the deadline is 31 January 2026. Is the problem ongoing? HMRC is working on fixes, but as of January 2026, many users still report incorrect calculations. Should I still use HMRC’s portal? Yes, but verify all figures carefully. You may also consider using an agent or external software.
Capital Gains Tax on Farmland Sales: Planning Ahead for Rural Landowners Posted on 18 September 202529 January 2026 by Farazia Gillani Selling farmland is often one of the most significant financial decisions a rural landowner will make. Whether driven by retirement, succession planning, or development opportunities, the sale can trigger a substantial Capital Gains Tax (CGT) liability if not carefully managed. At Apex Accountants, we work with farmers, landowners, and rural families across the UK to anticipate these challenges. With nearly two decades of experience in agricultural taxation, our specialists help clients prepare early, claim the right reliefs, and align sales with wider estate and succession goals. This article explores Capital Gains Tax on farmland sales, the key reliefs available, and how Agricultural Property Relief interacts with CGT. It also highlights practical scenarios that landowners face, common mistakes, and how effective succession planning can protect wealth for future generations. How CGT Applies to Farmland HMRC charges CGT for the gain realised from farmland sales. The gain is the difference between the sale price and the original purchase cost, adjusted for improvements. For higher and additional rate taxpayers, CGT applies at 20% for most assets. If the land counts as residential property, the rate rises to 28%. Example: A farmer selling land with planning permission for housing may face the 28% rate. Agricultural reliefs may not apply, as HMRC views the disposal as residential or development land. This is a common issue when dealing with CGT for farmers who diversify land use. Reliefs Available to Rural Landowners Several reliefs can reduce or defer the tax: Business Asset Disposal Relief (BADR): This relief applies when farmland is used in a farming trade, taxing qualifying gains at 10% up to a £1 million lifetime limit. Rollover Relief: CGT can be deferred if proceeds are reinvested in other qualifying business assets within set time limits. Gift Hold-Over Relief: Transfers the CGT liability to the recipient when land is gifted. It is useful for family succession planning. APR and CGT Interaction Agricultural Property Relief (APR) reduces Inheritance Tax, not CGT. Confusion often arises because families consider sales and inheritance at the same time. For example, if a farmer sells land shortly before death, APR cannot reduce the CGT payable. APR only applies if the land is owned at death or transferred during lifetime for inheritance tax purposes. Professional guidance from tax advisors for farmland sales is essential to avoid mixing these two areas. Practical Planning Scenarios A farming partnership sells land used in trade and claims BADR, reducing the rate to 10%. A landowner reinvests proceeds from a sale into new farmland, using rollover relief to defer CGT. Parents gift farmland to children as part of succession planning, deferring CGT through Gift Hold-Over Relief while considering APR for future inheritance tax. A landowner sells bare land with no business use and pays CGT at 20% without reliefs. In such cases, advice on CGT for farmers can highlight whether any overlooked reliefs apply. Importance of Succession Planning Disposals often link to wider family succession. Rural families may sell land to fund retirement or restructure estates for the next generation. Aligning CGT planning with inheritance tax strategy ensures both immediate tax savings and long-term protection. Engaging experienced tax advisors for farmland sales ensures succession goals and tax planning strategies are properly aligned. Apex Accountants’ Guidance on Capital Gains Tax on Farmland Sales At Apex Accountants, we provide more than just tax calculations. Our team works closely with rural clients to understand land ownership structures, business use, and long-term family objectives well before any sale takes place. We review every aspect of the transaction, from identifying available reliefs to exploring opportunities for succession planning and future reinvestment. We tailor our approach to each landowner, whether they plan to retire, pass assets to the next generation, or restructure a farming business. By planning in advance, we help reduce CGT liabilities, protect proceeds, and give families the confidence to make informed financial decisions. This careful preparation supports both immediate needs and long-term wealth preservation. If you are considering selling farmland and want clear, practical advice, contact Apex Accountants today to discuss your options.
Practical Ways to Reduce Capital Gains Tax in the UK Posted on 22 January 202530 January 2026 by Farazia Gillani We previously discussed how Capital Gains Tax (CGT) impacts your assets and some strategies to reduce your tax bill. From understanding CGT rates and exemptions to minimising tax on rental properties and business sales, we covered practical ways to manage your tax efficiently. We also explored how Apex Accountants can guide you through complex tax rules. And how we can help you make the most of available reliefs. Now, in this expert guide, we’ll discuss ways in which you can lower your CGT and how expert advisors at Apex Accountants can guide you through the way. Let’s get started!
