What capital gains tax is charged on
Capital gains tax is a tax on the profit when you sell or give away something that has gone up in value. It is the gain that is taxed, not the full sale price. The most common examples we see are second homes and buy to let flats, shares held outside an ISA, crypto assets and business interests.
Your main home is usually exempt thanks to private residence relief. Things get more complicated if you let it out for a while, used part of it only for business, or owned more than one home at the same time. That covers a lot of people in Fulham and Putney who moved out of a first flat and kept it as a rental.
Rates and allowances for 2026/27
Everyone has an annual exempt amount of £3,000. Gains above that are added on top of your income for the year. The part that falls within your basic rate band is taxed at 18% and anything above it at 24%. Those rates apply to property and to shares alike.
Business Asset Disposal Relief can reduce the rate when you sell all or part of a qualifying business, subject to a lifetime limit. The rate under this relief has risen in recent years, and from 6/4/2026 it is 18%. Even so, it can still be valuable for higher rate taxpayers, and the qualifying conditions need to be met for two years before the sale.
What is included
- Capital gains calculations for property, shares and crypto
- 60 day UK property return and payment reminder
- Private residence relief and letting relief claims
- Business Asset Disposal Relief review
- Planning transfers between spouses or civil partners
- Use of capital losses from earlier years
- Reporting gains on your self assessment return
- Advice before you agree a sale
The 60 day rule for UK property
If you sell a UK residential property and there is capital gains tax to pay, you must report the sale to HMRC and pay the tax within 60 days of completion. This is done through a separate online property return, not your normal self assessment. You still include the gain on your tax return for that year as well.
Sixty days goes quickly when you are also dealing with solicitors, estate agents and perhaps buying somewhere new. We can work out the figures before completion so you know what to set aside, and file the return as soon as the sale goes through. Late filing brings penalties and interest, even where the tax turns out to be small.
Reliefs and costs people forget
The gain is not simply sale price minus purchase price. You can deduct certain costs, and there may be reliefs that cut the bill further. Missing them is the most common reason people overpay.
- Solicitor, surveyor and estate agent fees on both the purchase and the sale
- Stamp duty land tax paid when you bought
- Improvement work such as an extension or loft conversion, but not general repairs
- Private residence relief for years you lived in the property, plus the final 9 months of ownership
- Letting relief where you shared the home with a tenant
- Losses from earlier years that were claimed within the time limit
Planning before you sell
The best time to talk to us is before you agree a sale, not after. Transfers between spouses and civil partners are normally made at no gain and no loss, so moving part of an asset to a partner with unused allowances or a lower income can reduce the overall tax. Spreading sales of shares across two tax years can mean using two annual exempt amounts.
Timing also matters for business owners. If you are thinking of selling your company or retiring from a partnership, we check the conditions for Business Asset Disposal Relief well in advance. A small change in shareholding or role in the two years before a sale can affect whether the relief applies.
What we need from you
For a property sale, bring the completion statements from when you bought and when you sold, invoices for any improvement work and a note of the periods you lived there or let it out. For shares and funds, your broker statements and contract notes are enough. If you have crypto, an export of your transaction history from each exchange or wallet is the starting point.
We review the figures for free and agree a fixed fee before any work starts. Clients from Sands End, Hammersmith and Wandsworth often send everything by email and meet us once by video to go through the result.
Who this suits
- Owners selling a flat they once lived in and later let out
- Landlords selling a buy to let property in Fulham or Putney
- Investors with shares or funds held outside an ISA
- Business owners planning to sell or close their company
- People who have received property or shares as a gift or inheritance
Common questions
How long do I have to pay capital gains tax on a property sale?
For UK residential property, you must report the sale and pay any tax within 60 days of completion. Other gains, such as shares, are reported on your self assessment return and paid by 31/1 after the end of the tax year.
Do I pay capital gains tax when I sell my home?
Usually not, if it has been your only or main home throughout your ownership. If you let it out, used part of it for business or had a very large garden, some of the gain may be taxable. We can work out the exact position.
What is the capital gains tax allowance for 2026/27?
The annual exempt amount is £3,000 per person. Married couples and civil partners each have their own, so owning an asset jointly can mean two allowances are available.
Can I offset losses against my gains?
Yes. Losses in the same tax year are set against gains first. Unused losses can be carried forward to future years, but only if they are claimed within four years of the end of the tax year in which they arose.
Do I have to pay capital gains tax on crypto?
Yes, selling, swapping or spending crypto assets can create a taxable gain. HMRC treats them in a similar way to shares, with specific matching rules. Keeping good records of every transaction makes the calculation much easier.
Does gifting property to my children trigger capital gains tax?
It can. A gift to anyone other than a spouse or civil partner is treated as a sale at market value, so tax may be due even though no money changes hands. There may also be inheritance tax points to think about.
Do I need to include a property gain on my tax return if I already filed a 60 day return?
Yes, if you are in self assessment. The 60 day return is a separate report, and the gain also goes on your annual return for that tax year. Any tax you paid through the 60 day return is credited, so you do not pay twice.
Are there capital gains tax rules for people who live abroad?
Yes. Non residents pay UK capital gains tax on UK property and land, and must report any sale within 60 days of completion, even where no tax is due. Our non resident landlord tax service covers this in more detail.