Selling a property, investment or business asset can create a significant tax liability. However, calculating Capital Gains Tax is rarely as simple as subtracting the original purchase price from the selling price. Allowable costs, ownership history, capital losses, tax reliefs and reporting deadlines must all be considered.

Professional Capital Gains Tax services can help you calculate the correct liability, meet HMRC requirements and avoid paying more tax than legally necessary. At Tax Consultant, we support property owners, landlords, investors, shareholders and business owners with practical advice before and after an asset is disposed of.

What Is Capital Gains Tax?

Capital Gains Tax is charged on the profit made when you sell, transfer, exchange or give away an asset that has increased in value. The tax normally applies to the gain rather than the total amount received.

For example, if you purchase an investment for £80,000 and later sell it for £120,000, the starting gain is £40,000. Allowable acquisition costs, selling expenses, improvement expenditure, capital losses and tax reliefs may then reduce the taxable amount.

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

Which Assets Can Be Subject to Capital Gains Tax?

Capital Gains Tax commonly applies when selling a second home, buy-to-let property, shares held outside an ISA or pension, cryptocurrency, valuable personal possessions, business premises or an interest in a business.

Your main home will often qualify for Private Residence Relief. However, full relief may not be available if the property was rented out, used exclusively for business, contained substantial additional land or was not occupied as your main residence throughout the ownership period.

Tax Consultant can review the complete history of an asset and determine which periods, expenses and reliefs should be included in the calculation.

Capital Gains Tax Rates and Allowance

For the 2026/27 tax year, most individuals have an annual Capital Gains Tax exemption of £3,000. Gains remaining after allowable losses and reliefs may be 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 that band. Higher-rate and additional-rate taxpayers generally pay 24% on their taxable gains. The correct calculation must consider both taxable income and capital gains for the year.

Trustees and personal representatives generally pay 24%, while qualifying gains covered by Business Asset Disposal Relief are taxed at 18% from 6 April 2026. View HMRC’s current Capital Gains Tax rates and allowances.

Calculating a Capital Gain Correctly

The starting point is usually the amount received for the asset, less its original acquisition cost. However, several additional expenses may be deductible.

Allowable costs can include professional valuation fees, legal expenses, estate-agent charges, Stamp Duty paid when acquiring property and certain costs of improving an asset. Improvement expenditure must normally add value to the asset and still be reflected in it when it is sold. Routine repairs, decorating and general maintenance are usually treated differently.

Where an asset was inherited, gifted, jointly owned or acquired many years ago, establishing the correct base cost can be complicated. Professional Capital Gains Tax services can help collect the relevant information, apply the correct valuation rules and create a clear calculation that can be supported if HMRC asks questions.

Using Capital Losses

A loss made when disposing of one asset may be used to reduce taxable gains on another asset. Losses usually need to be reported to HMRC before they can be used, and unused losses may potentially be carried forward.

The way losses and the annual exemption are allocated can affect the final liability, particularly when different gains are taxed at different rates. A tax advisor can review current and previous disposals to ensure valid losses are not overlooked.

Capital Gains Tax on Residential Property

Capital Gains Tax is particularly important for landlords and owners of second homes. If tax is due on the disposal of UK residential property, the gain must normally be reported and paid within 60 days of completion.

This is much earlier than the standard Self Assessment deadline. Missing the 60-day deadline can lead to penalties and interest. If you already complete Self Assessment, the property disposal may also need to appear on your annual tax return. Read HMRC’s residential property reporting guidance.

Our Capital Gains Tax services can include preparing the property disposal return, calculating the estimated tax, reviewing available reliefs and ensuring the transaction is reported correctly.

Capital Gains Tax for Business Owners

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

Business Asset Disposal Relief may apply to certain qualifying disposals. It can cover the sale of all or part of a business, shares in a personal trading company or assets used by a business that has ceased trading. Detailed ownership, employment and trading conditions must be satisfied.

The relief is not automatic, and claims must be made correctly. Tax Consultant can review your eligibility and calculate how much of the gain may qualify. Where the conditions are not met, other reliefs or planning opportunities may still be available.

Why Pre-Sale Tax Planning Matters

The best time to seek advice is usually before agreeing to sell or transfer an asset. Once a transaction has completed, many planning opportunities may no longer be available.

Advance planning allows time to review ownership, gather missing documents, obtain valuations and estimate the likely liability. It may also help determine whether the timing of the disposal, the use of capital losses or a qualifying relief could affect the tax payable.

Tax planning must always reflect genuine commercial and personal circumstances. Tax Consultant provides lawful, practical advice based on the facts of each proposed transaction.

How Tax Consultant Can Help

At Tax Consultant, we provide comprehensive Capital Gains Tax services for individuals and businesses across the UK. We can assist with property sales, investment disposals, business assets, company shares, gifts and inherited property.

Our service can include reviewing purchase and sale documents, identifying allowable expenditure, calculating gains and losses, considering relevant reliefs, preparing property disposal reports and including gains on Self Assessment returns.

We can also communicate with HMRC if questions are raised about a calculation or claim. Our aim is to make the process clear, reduce the risk of errors and ensure that every legitimate deduction and relief is considered.

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

Frequently Asked Questions
1. Do I pay Capital Gains Tax on the full selling price?

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

2. Is my main home exempt from Capital Gains Tax?

Your main residence may qualify for Private Residence Relief. Full relief may not apply if the property was rented, used for business or not occupied throughout the ownership period.

3. Can improvement costs reduce my taxable gain?

Qualifying capital improvements may be deductible if they increased the asset’s value and remain reflected in it when sold. Routine repairs and maintenance are normally treated differently.

4. How quickly must a residential property sale be reported?

If Capital Gains Tax is due on UK residential property, it must generally be reported and paid within 60 days of completion.

5. Can Tax Consultant submit my Capital Gains Tax return?

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