Selling property, shares or business assets can create a Capital Gains Tax liability. Although the basic idea sounds straightforward, the actual calculation may involve ownership dates, valuations, allowable expenses, capital losses, tax reliefs and strict reporting deadlines.

Professional Capital Gains Tax services can help you calculate the correct liability, prepare the necessary reports and avoid paying more tax than legally required. At SAS Accountants, we support landlords, property owners, investors and business owners with clear and practical Capital Gains Tax advice.

What Is Capital Gains Tax?

Capital Gains Tax is charged on the profit made when an asset is sold, transferred, exchanged or given away. It is generally the gain that is taxed rather than the full amount received.

For example, if you bought an investment for £100,000 and later sold it for £150,000, the starting gain would be £50,000. However, eligible purchase costs, selling expenses, improvement expenditure, capital losses and tax reliefs may reduce the taxable amount.

A taxable disposal does not always involve a conventional sale. Giving an asset to another person or transferring it for less than its market value can also create a chargeable gain. Different rules may apply to transfers between spouses or civil partners, gifts to charity and inherited assets.

Which Assets Can Create a Taxable Gain?

Capital Gains Tax commonly applies to second homes, buy-to-let properties, shares held outside an ISA or pension, cryptocurrency, valuable personal possessions and business assets.

Your main residence may qualify for Private Residence Relief. Full relief is not guaranteed in every case, particularly when the property was rented out, used exclusively for business or not occupied as your main home throughout the ownership period.

SAS Accountants can review the full history of an asset and determine which periods, costs and reliefs should be included in the calculation.

Capital Gains Tax Rates and Allowances

For the 2026/27 tax year, most individuals have an annual Capital Gains Tax exemption of £3,000. Only gains remaining after allowable losses and eligible reliefs have been considered are normally taxable.

Individuals generally pay Capital Gains Tax at 18% on gains falling within their unused basic-rate Income Tax band and 24% on gains above it. Higher-rate and additional-rate taxpayers generally pay 24% on taxable gains.

The correct rate cannot always be identified by looking at the gain alone. Your taxable income must also be considered because part of a gain may fall within the basic-rate band while the remainder is taxed at the higher rate. Check the current Capital Gains Tax rates and allowances.

Calculating Your Capital Gain

The calculation usually begins with the disposal proceeds or market value of the asset. The acquisition cost and qualifying expenditure are then deducted.

Allowable expenditure may include legal fees, professional valuation charges, estate-agent fees, Stamp Duty paid when acquiring property and certain capital improvement costs. An improvement must normally add value to the asset and remain reflected in it when the disposal takes place.

Routine maintenance and ordinary repairs are generally treated differently from capital improvements. Confusing these costs is a common reason for incorrect property gain calculations.

When an asset was inherited, gifted, jointly owned or acquired many years ago, establishing the correct base value can be difficult. Our Capital Gains Tax services can include reviewing documentation, obtaining appropriate valuations and preparing a calculation that can be supported if HMRC asks questions.

Using Capital Losses

A loss made on the disposal of one asset may be used against taxable gains from another asset. Unused allowable losses may also be carried forward after being properly reported to HMRC.

The order in which losses, annual exemptions and reliefs are applied can affect the final tax liability. Reviewing current and previous disposals is therefore important, particularly when gains are subject to different tax rates.

SAS Accountants can examine your earlier transactions and ensure that valid capital losses are not overlooked.

Capital Gains Tax on Property

Capital Gains Tax is particularly relevant to landlords, investors and owners of second homes. When tax is due on the sale of UK residential property, the disposal must normally be reported and the tax paid within 60 days of completion.

This deadline is much shorter than the usual Self Assessment timetable. Late reporting may result in penalties and interest. If you are registered for Self Assessment, the property transaction may also need to be included on your annual return. Read HMRC’s property reporting guidance.

Our property Capital Gains Tax service can cover the gain calculation, relief review, preparation of the 60-day property return and advice about the amount payable.

Private Residence Relief

Private Residence Relief may protect some or all of the gain made when selling your main home. Eligibility depends on factors such as occupation, ownership, periods of absence and whether any part of the property was used exclusively for business.

Additional complications can arise when a property was previously rented out, occupied only for part of the ownership period or owned jointly by people with different circumstances.

Assuming that every sale of a main home is automatically exempt can be risky. SAS Accountants can review the relevant periods and calculate how much relief may be available.

Capital Gains Tax for Business Owners

Business owners may face Capital Gains Tax when selling a business, disposing of commercial premises, leaving a partnership or transferring shares in a company.

Business Asset Disposal Relief may apply to certain qualifying business disposals. For disposals from 6 April 2026, qualifying gains are taxed at 18%, subject to the eligibility conditions and lifetime limit.

The relief is not automatic. Conditions relating to ownership, employment, trading activities and the qualifying period must be satisfied. Our team can assess your position and prepare the relevant claim where appropriate.

Other reliefs may allow a gain to be deferred in particular circumstances, such as when qualifying business assets are replaced or certain assets are gifted.

Why Advice Before a Sale Matters

The most useful time to seek Capital Gains Tax advice is usually before agreeing to sell or transfer an asset. Once the transaction has completed, some planning opportunities may no longer be available.

Pre-sale advice provides time to locate missing records, obtain valuations, review ownership arrangements and estimate the expected tax bill. It may also allow available capital losses or reliefs to be considered before the disposal date.

Understanding the likely liability in advance also helps with cash-flow planning, especially when tax must be paid shortly after completion.

How SAS Accountants Can Help

At SAS Accountants, we provide Capital Gains Tax services for property owners, landlords, shareholders, investors, sole traders and company directors.

We can review purchase and sale documents, calculate gains and losses, identify allowable costs, consider relevant reliefs and prepare the necessary HMRC returns. We can also assist with inherited or gifted assets, jointly owned property and transactions where historical records are incomplete.

If HMRC raises questions about a calculation, valuation or relief claim, we can review the correspondence and communicate with HMRC on your behalf.

Contact SAS Accountants today for professional Capital Gains Tax advice before or after disposing of an asset.

Frequently Asked Questions
1. Is Capital Gains Tax charged on the full selling price?

No. Capital Gains Tax is generally charged on the profit after the acquisition cost, allowable expenses, losses, annual exemption and relevant reliefs have been considered.

2. Do I pay Capital Gains Tax when selling my main home?

Private Residence Relief may cover the gain, but full relief may not apply if the property was rented out, used for business or not occupied throughout ownership.

3. Can property improvement costs reduce my gain?

Qualifying capital improvements may be deductible. Routine repairs, decorating and maintenance are normally treated differently.

4. When must I report a residential property sale?

If Capital Gains Tax is due on a UK residential property, the disposal must normally be reported and paid within 60 days of completion.

5. Can SAS Accountants submit my Capital Gains Tax return?

Yes. SAS Accountants can calculate the gain, review available reliefs, prepare the relevant return and report the disposal to HMRC on your behalf.