CAPITAL GAINS TAX

Capital Gains Tax (CGT) is the tax you pay on the profit (gain) when you sell or dispose of an asset that has increased in value. From shares and investment funds to second properties and business assets, understanding CGT is essential to avoid unexpected tax bills.

At Accountancy and Tax Crew, we help individuals and business owners plan for capital gains, utilise available reliefs, and ensure accurate reporting to HMRC.

What Triggers Capital Gains Tax?

You may need to pay CGT when you:

• Sell shares or investments (including mutual funds)
• Sell a second home or buy-to-let property (Your main residence (private home) is typically exempt under Private Residence Relief)
• Sell a business or business assets
• Give away assets (other than to a spouse or civil partner)
• Dispose of a crypto asset – Capital Gains Tax on Crypto Assets: Bitcoin, Ethereum & Digital Currency

Annual Exemption

Each individual has an annual CGT exemption. Gains below that threshold may not need to be reported unless total disposals exceed reporting limits or you are already within Self-Assessment.

Key Reliefs & Exemptions

• Private Residence Relief
• Business Asset Disposal Relief (BADR)
• Gift Hold-Over Relief
• Spousal Transfer

Selling Property: Additional Considerations

If you sell a buy-to-let or second home:

• Reporting deadline: You must report the gain and pay any CGT due within 60 days of completion (for residential property disposals)
• No automatic reporting: Even if you normally file a tax return, the 60-day reporting requirement applies separately
• ATED-related properties: Additional rules apply for high-value properties owned by companies

How We Help

• Pre-sale planning: Advising on timing and structuring to minimise tax before you sell
• Gain calculations: Accurate computation of gains, including acquisition costs, enhancement expenditure, and disposal costs
• Relief claims: Ensuring you claim all available reliefs, including Private Residence Relief, BADR, and gift hold-over
• Reporting & payment: Handling the 60-day property reporting and ensuring CGT is paid on time to avoid penalties

Common CGT Mistakes

• Missing the 60-day deadline for property sales (resulting in automatic penalties)
• Failing to deduct allowable costs (legal fees, agent fees, enhancement costs)
• Not utilising both spouses’ annual exemptions
• Incorrectly calculating gains on shares with multiple purchase dates

---

Planning to sell a property, shares, or business assets?

Let us help you structure the disposal to minimise your Capital Gains Tax liability.