Capital Gains Tax (CGT)

Capital Gains Tax (CGT) is a tax on the profit when you sell (or ‘dispose of’) an asset that’s increased in value. CGT is payable on the sale of ‘chargeable asset’ – this basically means any asset which is not exempt from CGT. This includes investment property.

From 27 October 2021, for UK resident individuals, capital gains on UK residential properties must be declared on HMRC's online CGT disposal return, and the tax paid, using the Capital Gains Tax UK property disposal service within 60 days of completion. If you are in Self-Assessment (SA), you must also declare the sale on your tax return.

If the total capital gains is below your available Annual Exemption and the total proceeds are less than four times the Annual Exemption, the gain is not reportable.

As a property investor, no-doubt CGT is one of your main consideration when deciding to sell your property.

Selling an investment property could be a lengthy and stressful experience. There may be a significant amount of capital gains tax to pay, depending on a number of factors. Making the right decision and properly considering all available reliefs can potentially save you thousands in tax! There are many different types of reliefs available which, if applicable, could reduce, defer or even eliminate your CGT liability.

It is important to get the right advice - at the right time - to avoid paying more tax than you need to.

As a specialist property accountant, we can give you the advice and help you need to ensure you are making informed and right decision that works in your best interest. We can take care of your entire property portfolio and deal with all HMRC filing requirements.

Not only that, we’ll also guide you every step of the way when you are making a significant property transaction – such as when buying or selling a property – and properly consider all available tax reliefs to ensure you do not pay a penny in tax more than you have to.