Helping individuals and businesses since 2006, Apex Accountants offers clear and reliable Capital Gains Tax services and advice in the UK. We make sure you stay compliant, claim the right reliefs, and pay only what’s needed.
What Is CGT?
If you make a profit or “gain” from the sale, gift, exchange, or other disposal of an asset, you are required to pay capital gains tax.
What Does Capital Gains Tax UK Apply To?
The tax is on the gain, not the asset’s sale price. For instance, if you purchased a painting for £15,000 and later sold it for £25,000, you would be liable for CGT only on the £10,000 gain, not the entire sale price.
Which Items are Subject to CGT Payable in UK?
You pay Capital Gains Tax on the gain when you sell (or ‘dispose of’):
- most personal possessions, for example, jewellery, paintings, antiques and coins and stamps
- asset worth £6,000 or more, apart from your car
- property that’s not your main home
- your main home if you’ve let it out, used it for business or it’s very large
- any shares that are not in an ISA or PEP
- business assets for example land and buildings, fixtures and fittings, plant and machinery, shares and registered trademarks
Find Out If Your Asset Qualifies for CGT Exemptions!
What Are CGT Rates For 2025/26?
The main rates are 2025/26:
- 18% for gains within an individual’s unused basic rate band on most non-residential assets (aligned post-30 October 2024), rising to 24% for higher rate taxpayers.
Rates for residential property disposals in 2025/26:
- 24% for gains within the basic rate band
- 32% for higher/additional rate taxpayers
Two higher rates apply to carried interest. These are:
- Carried interest gains are taxed at a 32% flat rate for higher/additional rate taxpayers in 2025/26 (individuals and personal representatives).
- Trustees are taxed at 24%/32%.
In addition, Business Asset Disposal Relief applies an 18% rate to qualifying business asset gains from 6 April 2026 onward
Trustees and personal representatives are taxed at a flat 24% on most gains (32% on carried interest) for 2025/26.
Annual Exempt Amount (AEA) for Capital Gains Tax UK
The Annual Exempt Amount (AEA) for Capital Gains Tax UK is set at £3,000 for individuals in the 2025/26 tax year. This means you don’t have to pay CGT on up to £3,000 of gains you make. However, if it exceeds this limit, you’ll have to pay tax on the gains. The amount of tax would depend on the asset type involved and your income level.
Calculating Capital Gains Tax UK
If you are not an expert, calculating capital gains tax UK can be difficult. It involves several steps. To help you calculate CGT correctly, we bring you some real-life examples on CGT, so that you can better understand it.
Simple Step-by-Step CGT Calculations
- Determining the Cost Basis of the Asset:
The first step is to calculate the initial investment you made in the asset. This includes the purchase price and all associated costs of the asset, such as legal fees, costs spent on improvements, etc.
- Calculate the Sale Price:
The next step is to calculate the total amount you received after selling the asset. This includes deducting the cost of sale and fees of the estate agent from the final sale price.
- Calculate the Gain:
The third step is to calculate the CGT. To calculate capital gains, subtract the cost basis from the asset’s sale price.
- Apply the Annual Exempt Amount:
The annual exempt amount for individuals, personal representatives and trustees for disabled people for 2025/26 is set at £3,000. This is the amount up to which any gain made is not taxable
- Determine the Tax Rate:
Finally, establish the tax rate based on your income and the asset type. Basic rate taxpayers pay 18% on most assets and residential property. On the other hand, higher-rate taxpayers pay 32% on residential property gains (2025/26 rate post-30 Oct 2024) and 24% on most other assets.
By following these steps, you can accurately calculate your CGT and plan effectively to manage your tax liabilities.
Property Capital Gains Tax:
Property Capital Gains Tax (CGT) applies to profits from selling or disposing of property that has increased in value, not the total selling price. CGT comes into play when you sell property that isn’t your main home, including:
- Buy-to-let properties
- Business premises
- Land
- Inherited property
Your gain calculation involves subtracting the original purchase price from the selling price. Let’s say you bought a UK residential property for £200,000 and sold it for £500,000 – you would pay CGT on the £300,000 profit, minus allowable expenses.
The CGT rates for residential property are 18% for basic rate taxpayers and 24% for higher rate taxpayers. These rates went up after October 2024, which makes accurate calculations crucial.
The annual tax-free allowance stands at £3,000 for the 2025/26 tax year. You only pay tax on gains above this amount. Married couples and civil partners who own assets together can combine their allowances to reach £6,000.
You need to report and pay any CGT on UK property sales within 60 days of completion. Missing this deadline could lead to penalties and interest charges.
How To Reduce Capital Gains Tax Liability On Property Sale?
You can legally reduce your property capital gains tax liability through these proven strategies.
Maximise Private Residence Relief (PRR)
The best exemption comes from your main home status. You’ll get full relief during your residence periods plus the last nine months of ownership, whatever your occupancy status.
Employ Allowable Deductions
Your taxable gain becomes lower when you deduct these costs:
- Legal and estate agent fees for buying and selling
- Stamp Duty Land Tax paid when purchasing
- Surveyor fees and acquisition costs
- Capital improvements like extensions or renovations (not routine maintenance)
Transfer Assets Strategically:
Married couples and civil partners can pool their annual CGT allowances to reach £6,000. Property share transfers between spouses don’t trigger immediate tax, which doubles your tax-free threshold.
Time Your Sale Wisely:
CGT disposal dates usually align with contract exchange, not completion. You can spread asset sales across different tax years to maximise yearly exemptions. Sales after April 6th instead of March let you tap into two years’ allowances.
Offset Losses:
You can reduce property gains with capital losses from other asset sales, which helps especially with the lower annual exemption. HMRC needs these loss reports within four years.
Lettings Relief:
Letting relief up to £40,000 might apply if you share your main residence with tenants. While it won’t create a loss, it can bring your gain down to zero.
These strategies can significantly lower your property Capital Gains Tax bill. But getting it right depends on timing, accurate calculations, and proper planning. If you’re unsure where to begin, let the Apex Accountants & Tax Advisors take care of it for you.
Real-Life Examples:
Example 1: Basic-Rate Taxpayer Selling a Former Main Residence with Letting Period
Scenario: Lisa bought a UK flat in June 2012 for £180,000. She lived in it as her main residence until June 2018 (6 years), then let it out to tenants until she sold it in June 2025 for £320,000.
Other costs:
- Legal/estate agent fees: £5,000
- No major improvements
- She earns £25,000/year, so she is a basic-rate taxpayer.
Step-by-step Calculation:
- Total gain:
Sale price £320,000 – Purchase price £180,000 – Selling costs £5,000 = £135,000 - Ownership period:
13 years (2012 to 2025)- PRR covers 6 years + final 9 months = 6.75 years
- Let period: 6.25 years
- PRR exemption portion:
6.75 ÷ 13 = 51.92%
£135,000 × 51.92% = £70,092 (exempt via PRR) - Taxable gain before reliefs:
£135,000 – £70,092 = £64,908 - Letting Relief:
Since she did not share occupancy with tenants, Letting Relief is not available under post-2020 rules. - Annual exemption:
£64,908 – £3,000 = £61,908 - CGT rate (basic-rate band not exceeded):
Residential rate: 18% - CGT due:
£61,908 × 18% = £11,143.44
Example 2: Higher-Rate Taxpayer Selling a Buy-to-Let Property
Scenario: James is a higher-rate taxpayer with £65,000 annual income. He bought a buy-to-let house in April 2014 for £250,000, never lived in it, and sold it in April 2026 for £420,000.
Costs:
- Legal/agent fees: £6,000
- Renovations: £14,000 (kitchen & bathroom upgrades)
Step-by-step Calculation:
- Gain before deductions:
£420,000 – £250,000 – £6,000 – £14,000 = £150,000 - PRR and Letting Relief:
Not applicable (never lived in property) - Annual exemption:
£150,000 – £3,000 = £147,000 - CGT rate (higher-rate taxpayer):
Residential property: 32% - CGT due:
£147,000 × 32%= £47,040
Example 3: UK Resident Selling Overseas Property (with Double Taxation Relief)
Scenario: Amir, a UK resident, sells a holiday home in Spain in August 2025. He bought it for €180,000 in 2010 and sells it for €300,000. He spent €10,000 on renovations and paid €6,000 in local selling fees.
Exchange Rate:
At sale: €1 = £0.85
At purchase: €1 = £0.80
Step-by-step Calculation:
- Converted values to GBP:
- Purchase price: €180,000 × 0.80 = £144,000
- Sale price: €300,000 × 0.85 = £255,000
- Renovation + fees: €16,000 × 0.85 = £13,600
- Gain before reliefs:
£255,000 – £144,000 – £13,600 = £97,400 - Private Residence Relief (PRR):
Not available (used as a holiday home only) - Annual exemption:
£97,400 – £3,000 = £94,400 - CGT rate (higher-rate taxpayer):
Overseas property = treated as residential: 24% - UK CGT due:
£94,400 × 24% = £22,656 - Spanish CGT paid (assume 19%):
£94,400 × 19% = £17,936 - Double Taxation Relief:
UK CGT £22,656 – Spanish CGT £17,936 = £4,720 payable to HMRC
Note: The disposal date of the asset determines which rates apply. For this calculation, we’ll assume the shares were sold after 30 October 2024.
Basic Rate Taxpayers
Rate: 18% on non-residential property gains and 24% on other assets (from 30 October 2024).
Example: Earning £40,000 annually and selling shares with a £30,000 gain.
Calculation:
- Taxable income: £40,000 – £12,570 (Personal Allowance) = £27,430
- Total taxable amount (income + gain): £27,430 + £27,000 (after £3,000 CGT allowance) = £54,430
- Basic rate band up to: £50,270
Capital Gain taxed at 18% (basic rate): £22,840
Capital Gain taxed at 24% (higher rate): £4,160
Tax Due:
- £22,840 × 18% = £4,111.20
- £4,160 × 24% = £998.40
Total CGT Due: £5,109.60
Higher Rate Taxpayers
Rate: 24% on most assets and 28% on residential property gains (from 30 October 2024).
Example: Earning £70,000 annually and selling a second home with a £50,000 gain.
Calculation:
- Annual income: £70,000 (above the basic rate band of £50,270)
- Total taxable capital gain: £50,000 – £3,000 (CGT allowance) = £47,000
- Since income is already above £50,270, the entire gain is taxed at 28%.
Tax Due:
- £47,000 × 28% = £13,160
Total CGT Due: £13,160
Additional Rate Taxpayers
Rate: 24% on most assets and 28% on residential property gains (from 30 October 2024).
Example: Earning £160,000 annually and making a £40,000 gain on antiques.
Calculation:
- Annual income: £160,000 (above the additional rate threshold of £125,140)
- Total taxable capital gain: £40,000 – £3,000 (CGT allowance) = £37,000
- Since income exceeds the additional rate threshold, the entire gain is taxed at 24%.
Tax Due:
- £37,000 × 24% = £8,880
Total CGT Due: £8,880
Worked Example Across Different Bands
Scenario: Earning £45,000 and Selling a Rental Property with a £60,000 Gain
Calculation: Total income (£105,000). The basic rate band covers up to £50,270. CGT Allowance: £3,000. Taxable Gain: £57,000. Gain within the basic rate band: £5,270; the remaining gain is £51,730.
Tax Due:
- £5,270 × 18% = £948.60
- £51,730 × 28% = £14,484.40
- £948.60 + £14,484.40 = £15,433
Total Tax Due: £15,433
Capital Gains Tax on Shares, Cryptocurrencies, and Collectables
At Apex Accountants, we provide expert guidance on how Capital Gains Tax (CGT) applies to different types of assets. Whether you’re selling shares, trading cryptocurrencies, or parting with collectables, it’s important to know how your gains are taxed – and how to manage them wisely.
Capital Gains Tax on Shares
When you gain profits by selling shares outside of tax-efficient wrappers like ISAs, Capital Gains Tax is charged on those profits. Tax planning around account structures and CGT allowance can make a huge difference. Our team of capital gains tax advisors and accountants guides you on smart ways of holding and disposing of shares while being tax efficient.
CGT on Cryptocurrencies
Selling digital currencies such as Bitcoin or Ethereum can trigger CGT. You’ll need to keep full records of all transactions – something HMRC takes seriously.
Example: Bought Bitcoin for £10,000, sold for £18,000 – gain: £8,000.
Tax Treatment:
- Basic rate taxpayers: 18%
- Higher rate taxpayers: 24%
These gains count towards your total income for the year. Our capital gains tax advisors can assist in staying compliant while helping reduce avoidable tax exposure.
UK Capital Gains Tax on Collectables
This includes valuables such as antiques, art, jewellery, and rare items.
Example: Purchased a painting for £2,000, sold it for £8,000 – gain: £6,000.
Tax Treatment:
- CGT applies at the same rates as above
- Items sold for under £6,000 may be exempt
We advise clients on how to manage and report the sale of personal possessions correctly to avoid penalties and take advantage of available reliefs.
Need Help with Capital Gains Tax?
Speak to our capital gains tax specialist in UK today for straightforward advice tailored to your assets. Whether you’re selling investments or valuables, our expert team can help manage your tax position efficiently and with confidence.
Tax Implications for Jointly Owned Assets and Transfers
For jointly owned assets, each owner is responsible for paying CGT on their portion of the gain. As a result, while determining their CGT obligation, each partner must take into consideration their share of the profit. Transfers between spouses or civil partners, however, are not subject to CGT, which is very helpful when it comes to tax planning. Transferring assets to a spouse who is in a lower tax band, for example, may lower the total CGT upon asset sale.
Additionally, in cases of joint ownership, each person may apply the £3,000 yearly exempt amount. This essentially doubles the amount of exemption that is available, offering even more ways to reduce CGT obligations. Thus, consulting with capital gains tax experts could be very helpful in making the most of these chances and guaranteeing that you take advantage of all applicable CGT deductions and reliefs.
Importance of Record-Keeping and Professional Advice for CGT
For accurate Capital Gains Tax UK calculations, you need to maintain detailed and accurate records. As per HMRC’s requirement, you must retain records for at least 6 years from the tax year in which the asset was sold. This helps you claim all the allowable reliefs and deductions.
With practical advice on capital gains tax, you can stay updated with frequent changes and avoid costly errors due to misunderstandings. It will also allow you to capitalise on opportunities and maximise your savings. Professional advice can be invaluable.
HMRC Rules For Reporting Capital Gains Tax (CGT) UK
Accurate reporting of Capital Gains Tax UK is crucial to avoid penalties. To stay compliant with HMRC rules, log in to your HMRC online account and complete the Capital Gains section of your Self-Assessment Tax Return, including all asset sales and gains, by 31 January following the end of the relevant tax year (e.g., for the 2025/2026 tax year ending 5 April 2026, the deadline is 31 January 2027).
For UK property sales, you must report and pay Capital Gains Tax (CGT) within 60 days of completion using the “Capital Gains Tax on UK Property” service on HMRC’s website, providing full details of the property, sale price, and gain calculation, and pay any CGT due using HMRC’s online payment system.
Personalised Advice On Capital Gains Tax
Our capital gains tax accountants and advisors offer straightforward CGT advice for landlords, property investors, individuals, and businesses across the UK. Our capital gains tax planning is practical, proactive, and fully aligned with current HMRC rules.
Capital Gains Tax Advice For Landlords & Property Investors
With the CGT allowance now reduced to £3,000 (2025/26) and residential property gains taxed at 18% or 24%, many clients are facing higher tax bills. We help by:
- Timing disposals to reduce tax impact
- Claiming all allowable expenses (legal, agent, and improvement costs)
- Advising on spousal transfers or joint ownership for tax efficiency
- Reviewing your full property portfolio for smarter planning
Your benefit: Clear, practical advice that saves you more than it costs.
Capital Gains Tax Specialist In UK For Individuals
Selling shares, crypto, or a second home? We simplify CGT for:
- Entrepreneurs selling their business
- Individuals cashing in on investments
- Families handling inherited assets
Our capital gains tax accountants break down exemptions, and reliefs (like Business Asset Disposal Relief), and help you stay compliant without stress.
Your benefit: Fewer surprises. More money in your pocket.
UK Capital Gains Tax Advice For Businesses
Company asset disposals, restructuring, or investment exits? Our CGT advice supports:
- Accurate calculations on gains
- Correct use of reliefs
- Group structuring for long-term savings
Your benefit: Confidence that your strategy supports growth, not just compliance.
Capital Gains Tax Advice For Non-UK Residents
Selling UK property as a non-resident? Our CGT advice ensures:
- Timely 60-day HMRC reporting
- Correct application of 18% or 28% rates
- Full consideration of business use or land size rules
- Exemption checks for five-year non-residency
Your benefit: Peace of mind that your property sale is tax-efficient, compliant, and fully optimised.
Why choose our Capital Gains Tax services in UK?
- Expert help with property, shares, crypto, and business sales
- Clear advice – no technical and complex procedures, just straight answers
- Smart timing tips to reduce your tax bill
- All HMRC paperwork done for you
- Claim every allowance you’re entitled to
- Tailored plans for landlords, individuals, and businesses
- Fast replies – no waiting weeks for answers
- Fair fees with no hidden extras
Partner With Us For Expert Capital Gains Tax Services
At Apex Accountants, our capital gains tax planning helps you stay compliant with all the regulations. We specialise in CGT planning and compliance, which benefits our clients by maintaining accurate records, maximising applicable relief, and improving their tax positions. Contact us today to find out how you can lower your CGT liability on your assets.