Capital Gains Tax Advice

If you have sold, or are about to sell, a property, personal shares, a stake in a business, or another asset of value, you may be liable to pay Capital Gains Tax (CGT).

With a wealth of experience in advising clients on CGT, our Tax team can offer:

  • Bespoke CGT advice on the sale of property, shares or other capital assets
  • Advice on how to report and pay a CGT tax bill
  • Suggestions on how you can reduce your CGT tax bill
  • Assistance with claiming all allowable reliefs and deductions for you

What is Capital Gains Tax?

If you sell an asset that has increased in value, CGT is applied on the 'gain' which means that tax is not calculated based on the value of the whole asset, but only on the uplift in value.

Examples of assets this could apply to could be a house, an artwork, or cyber assets including cryptocurrency.

How does Capital Gains Tax work?

CGT is not automatically deducted by HMRC, which means you'll need to submit a report.
You can do this yourself through a Self-Assessment submission for that tax year, or use the ‘real time' CGT service via the government website.

If you fail to report your CGT details – or report it inaccurately – you could face a fine larger than the tax bill itself.

What do I need to pay Capital Gains Tax on?

HMRC keeps a list of ‘chargeable assets' – these are what you may need to pay CGT on. Common examples include:

  • Personal possessions worth £6,000 or more (e.g. jewellery, art, antiques – excluding cars)
  • Property (houses, offices, land etc.)
  • Most shares or investments not held in an ISA or PEP
  • Business assets
  • Other assets that don't have a limited lifespan

As an example: if you bought your own home for £80,000, then moved in with a partner and later sold the first property for £120,000, CGT might apply to the £40,000 gain.

Cars, even if they've increased in value, are considered ‘possessions with a limited lifespan' and are exempt. The same applies to items such as clocks, watches and machinery, provided they haven't been used for business purposes.

What is the Capital Gains Tax annual allowance?

The current annual allowance for CGT is £3,000. You can make gains up to this amount without paying any tax to HMRC.

Once you exceed the limit, a rate will be applied to any gains based on your taxable income and the asset sold.

What Capital Gains Tax reliefs can I claim?

If you're selling property, shares, or business assets, you may qualify for CGT reliefs to reduce your bill. Depending on what you're selling, and your circumstances, you might be able to claim:

Lettings Relief (Limited Use)

Lettings Relief now only applies if you lived in the property alongside your tenant. If eligible, it can cover up to £40,000 of the gain (£80,000 for couples). Most landlords who simply rented out a former home won't qualify under the new rules.

Business Asset Disposal Relief (Previously Entrepreneurs' Relief)

If you're selling a business, shares in a personal company, or business assets, you might qualify for Business Asset Disposal Relief. It can reduce CGT from 20% to:

  • 14% on all gains on qualifying assets disposed of from 6 April 2025
  • 10% on all gains on qualifying assets disposed of on or before 5 April 2025

This relief only applies to the first £1 million of lifetime gains.

To qualify, you usually need to have owned the business or shares for at least two years and meet specific conditions regarding your role in the business.

Rollover Relief and Holdover Relief

If you sell business assets and reinvest in new ones, Rollover Relief allows you to defer CGT.

If you're gifting certain business assets (like shares or land), Holdover Relief allows you to postpone CGT – passing the gain to the recipient instead.

What happens if I don't report Capital Gains Tax or forget to pay it?

Failure to report or pay CGT can lead to:

  • Financial penalties
  • Interest on late payments
  • Formal tax investigations
  • Prosecution for deliberate avoidance

Over time, what could have been a manageable tax bill can quickly grow through added charges, making it harder to settle. In more serious cases, deliberate avoidance could lead to prosecution. If you are concerned about an unreported CGT liability, speak to our Tax team.

Do I pay Capital Gains Tax on overseas assets?

If you are UK-resident, you usually pay CGT on gains from selling overseas assets, including:

  • Overseas properties
  • Foreign shares and investments
  • Assets like land, businesses, or personal possessions based abroad

The basic rules are similar: you'll need to calculate the gain (in sterling), apply the annual allowance, and pay the appropriate CGT rate based on your total income.

If you live abroad (non-resident), you don't pay UK CGT on overseas assets, but UK property may still trigger a charge.

Who we help

We advise a wide range of clients on Capital Gains Tax, including those selling second properties or investments. We advise on the CGT position for estates & trusts as well as forward planning to reduce future liabilities.

The CGT rules on reliefs are complex and can change depending on your circumstances. Our team can assist by reviewing your position, checking whether you qualify for any reliefs, and helping to reduce your capital gains tax exposure. For further information, please contact our Tax Director, Liam Coulter.