Capital gains tax (CGT) is charged to individuals on profits made on the sale of assets, including residential property sales of property which is not your main residence.
If you are a UK resident, you are liable to CGT when your property is sold at a higher price than the original purchase, resulting in a Capital Gain.
Capital gains tax is payable on profits above the annual exempt amount, which for this tax year 24/25 is £3,000.
You may have to pay Capital Gains Tax if you make a profit when you sell a property that’s not your home. This applies to:
Calculation
To calculate the gain this would ordinarily be the difference between what you have paid for your property and the disposal price. You can also deduct costs of buying, selling or improving your property. These include:
The gain is then taxed at the taxpayers highest rate of tax applicable to capital gains – 18% basic rate, 28% higher rate.
Declaration and Payment
You have 60 days from the sale completion date to complete the capital gains tax return.
To report the gain, you will need to report this to HMRC using the ‘real time’ Capital Gains Tax service. If we are your acting agent, we are also able to submit the claim for you, through our agent account.
Whether you are a current client or not and have sold a property, please get in contact with us to ensure your gain is reported on time. For further information please click here, or alternatively contact us.
