Capital Gains Tax (CGT) is a tax charged on the profit you make when you sell or dispose of an asset that has increased in value. This can include property (not your main home), shares, investments, or valuable personal possessions.
Many taxpayers assume CGT only applies to large transactions, but even smaller gains may need to be reported depending on your circumstances.
What Counts as a Capital Gain?
A capital gain occurs when you sell an asset for more than its original purchase price. For example:
- Selling a buy-to-let property
- Disposing of company shares
- Selling cryptocurrency
- Transferring valuable assets
The gain is calculated as:
Sale price – purchase cost – allowable expenses = taxable gain
Allowances and Reliefs
The UK government provides an annual CGT allowance that lets individuals earn a certain amount of gains tax-free each year. Additional reliefs may also apply, including:
- Business Asset Disposal Relief
- Private Residence Relief
- Loss offsetting against gains
Proper planning can significantly reduce the tax you pay.
Reporting Capital Gains
Taxpayers must report capital gains through their Self Assessment tax return or relevant reporting system. In some cases, such as property sales, gains may need to be reported within strict time limits.
Failure to report gains correctly can result in penalties and interest charges.
How Professional Advice Helps
CGT rules can be complex, especially when dealing with multiple assets or international tax matters. Professional advisors help ensure:
- Accurate tax calculations
- Compliance with reporting deadlines
- Identification of reliefs and deductions
Seeking advice early can prevent costly mistakes and ensure your tax obligations are handled correctly.
Our Capital Gains Tax Services for you
CGT on Property Sales
Whether you’re selling a buy-to-let portfolio, a second home, or a development site, our advisers identify every legitimate mitigation strategy available — from principal private residence calculations and letting relief, to disposal timing across tax years and spousal transfers.
Business Exit & Share Disposal Planning
Selling a business or qualifying shares is one of the most significant financial events of your life. We advise on Business Asset Disposal Relief (BADR) eligibility and timing — with the BADR rate rising from 14% to 18% on 6 April 2026, acting now could mean a material saving. Our advice also covers rollover relief, holdover relief, Employee Ownership Trust disposals, and corporate restructuring strategies.
CGT on Inherited Assets & Trusts
Inheriting property, investments, or other assets triggers complex CGT considerations that are easily misunderstood. While inheritance itself isn’t a disposal, any subsequent sale crystallises a gain calculated from the probate valuation. We also advise on CGT within discretionary and bare trusts, where reduced annual exemptions and different rate structures apply. Our advisers ensure you fully understand your base cost position and structure any disposal to minimise exposure.
Divorce & Separation CGT Advice
The rules for CGT on divorce changed significantly in April 2023, extending the window for no-gain/no-loss transfers between separating spouses. We advise on inter-spousal transfers, deferred disposals, and principal private residence relief to ensure separation doesn’t create an unnecessary tax liability at an already difficult time.
Crypto, Investments & CGT Loss Planning
Cryptocurrency disposals — including sales, swaps, and using crypto to purchase goods — are fully within scope of UK Capital Gains Tax, and HMRC’s scrutiny of crypto activity is intensifying. Alongside crypto, we advise on CGT across investment portfolios, EIS/SEIS deferral options, and loss relief strategies. Capital losses offset gains in the same tax year and carry forward indefinitely — we build disposal timing strategies that spread gains across multiple tax years and maximise your exemptions over time.
Cross-Border & Non-UK Resident CGT Advice
If you live outside the UK, own UK assets from abroad, or hold overseas assets while UK resident, your CGT position involves a layer of complexity most generalist advisers are not equipped to handle. We advise on non-resident CGT on UK property disposals, double taxation treaty relief, remittance basis for non-domiciled residents, and the interaction between UK CGT and overseas tax obligations.