Sold a UK Property? File your 60-day return with the "CGT Advisor of the Year"

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“Quick, easy, reasonably priced support from Charles regarding capital gains tax.”

“The Tax Faculty provided an excellent and extremely helpful service … expertly and quickly facilitating my Capital Gains Tax return and saving me a great deal of CGT costs in the process.”

"Very helpful! … In my case, there will be no CGT to pay, so I won’t need their services further, but I was very impressed with the free advice Charles gave me and the fact that he gave up time on the weekend to speak to me.”

“I cannot praise this accountancy company highly enough for the help my brother and I received concerning very complicated capital gains tax liability … they were able to make sure the tax computations were received by HMRC before the deadline date.”

“As an expat there is double risk of undue exposure to CGT … Working with The Tax Faculty we were able to minimise our exposure to CGT by making sure all the deductible costs of selling a home were accounted for. Highly recommend engaging The Tax Faculty as your trusted tax agent for peace of mind.”

“I came across Charles and The Tax Faculty when researching the internet for the best way to reduce capital gains tax. … within a few minutes he had a plan … Within a few days I received a comprehensive report and calculations with clear instructions on what to do next.”

Client Q & A

We encourage you to take a look at our Client Q&A section, where we talk through real examples of how we’ve supported people with very different Capital Gains Tax situations. Whether it’s disposing of cryptoassets, selling property, managing inherited assets, or navigating complex investment portfolios, every client’s position is unique — and so is the advice they need.

By exploring these scenarios, you’ll get a clear sense of how we approach each case, how we explain the options available, and how we work with clients to achieve the best possible outcomes. It’s a practical way to see what working with us truly looks like, and it may even help you recognise aspects of your own situation.

What Is Capital Gains Tax on Residential Property?

Capital Gains Tax is a tax you pay on the profit when you sell or dispose of a residential property that has increased in value.

Unlike income tax, CGT is only payable on the profit you make from the sale, not the total amount you receive.

The key properties that fall under CGT include second homes and rental properties — your main residence is typically exempt due to Private Residence Relief, unless there are periods when you did not live there.

How to Calculate Capital Gains Tax on Residential Property Sales

To calculate your CGT liability, you need to determine the profit you’ve made from the residential property sale. This will depend on a number of factors, including:

• The amount you bought the property for (or in some circumstances the market value of the asset when you acquired it),

• The amount you sold the property for (or in some circumstances the market value of the asset when you sold it or gave it away),

• Any costs associated with buying or selling the property, such as estate agent fees or legal fees, and

• Any improvements you have made to the asset during the period of ownership.

There are a number of other expenses which may be included in the capital gains tax computations depending on your individual circumstances.

As the CGT legislation governing residential property sales is complex, we recommend discussing your situation with a qualified advisor so that you can be sure of the accuracy of your computations and that you are paying as little CGT as possible while still complying with the rules.

Reporting Capital Gains Tax on Residential Property

Once you have calculated your CGT liability, it’s crucial to report it correctly to HMRC.

You need to report and pay your CGT within 60 days of completing the sale of residential property.

Failing to meet this deadline can result in penalties and interest charges, so it’s important to stay compliant.

Reporting can be done through the HMRC CGT Return Online Service or by a paper CGT Return if you are unable to register for the online service.

If you usually file a Self-Assessment Tax Return, you will also need to include details of the sale of the residential property in your tax return for the year during which the property was sold.

If you’re unsure how to proceed, seeking the help of a tax advisor can ensure that everything is reported accurately and on time.

We have filed thousands of CGT Returns for our clients - feel free to drop us an email to discuss your circumstances and how we can help you to report your CGT Return on time - info@capitalgainstax.co.uk

Frequently Asked Questions About Capital Gains Tax on Residential Property

Q: Is my main home subject to Capital Gains Tax?

A: Your main residence is usually exempt from CGT, thanks to Private Residence Relief. However, if you’ve rented out part of your home, used part of your home for business purposes or if you've had any periods during your ownership where you did not live in the property as your main home, then some of the gain may still be taxable.

Q: How much is the CGT allowance for 2024?

A: The annual CGT allowance for 2024 is £3,000 for individuals and £1,500 for trusts. Couples can combine their allowances for up to £6,000.

Q: Can I avoid Capital Gains Tax by reinvesting in another property?

A: Unfortunately, the UK does not currently offer a rollover relief for reinvesting in residential property, unlike some other countries. However, careful planning and the use of available reliefs can help minimise your tax.

Q: What expenses can I deduct when calculating Capital Gains Tax on residential property?

A: You can deduct certain allowable expenses, including legal fees, estate agent fees, stamp duty, and the cost of improvements made to the property (not regular maintenance). These deductions help reduce your overall taxable gain.

Q: How long do I have to live in a property for it to qualify as my main residence and be exempt from CGT?

A: There is no fixed minimum period, but HMRC will consider factors such as how long you lived there, whether it was genuinely your home, and if you made it your primary residence. The more evidence you have that it was your main home, the better. This is a very complex area of the legislation and requires careful consideration - speak to an expert if you are unsure.

Q: If I gift a property to a family member, do I still need to pay Capital Gains Tax?

A: Yes, gifting a property is still considered a disposal for CGT purposes. You would need to calculate CGT based on the market value of the property at the time of the gift, unless it is gifted to your spouse or civil partner.

Q: Can I get relief if I sell a property that I inherited?

A: Yes, you can still qualify for the Annual Exemption Allowance and deduct allowable expenses. The gain will be based on the property's market value at the time of inheritance, not the original purchase price.

Managing Capital Gains Tax on residential property can be challenging, especially with the ever-changing rules and rates. At CapitalGainsTax.co.uk, we specialise in helping individuals navigate the complexities of CGT on residential property sales. Our team, led by former Senior HMRC Tax Professionals, provides tailored advice to minimise your tax liability while ensuring compliance.

If you have sold or are thinking of selling a residential property and want to make sure you are not paying more CGT than you need to, contact us today for a free consultation. We can help you navigate the complexities of CGT and ensure that once a property has sold that all filing is completed within the 60-day time limit.

If you require assistance with you CGT circumstances, please feel free to contact us on info@capitalgainstax.co.uk or call us free on 0800 0016 878 for a free initial consultation.

You can also complete the form below and one of our team will get back to you as soon as possible.

Get Expert Help with Capital Gains Tax on Residential Property

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Tax Troubles? We're here to help

We can solve your Capital Gains Tax problems, with ex-senior expert HMRC inspectors here to help to take the stress away from your tax worries.

We do everything for you, including filing returns and giving advice that may help to reduce the amount of tax that you owe.

Our guarantee to you - You will pay the lowest amount of tax possible, while complying with the law.

Contact us free on 0800 0016 878, email info@capitalgainstax.co.uk or fill in our handy form and on of our experts will get back to you as soon as possible.

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0800 0016 878 or +44 207 101 3845

Email

info@capitalgainstax.co.uk