Capital Gains Tax on UK Property
Capital Gains Tax on UK Property: How Goldcrest Accountancy Makes It Simple
When you sell a property in the UK that isn’t your main home, you may be liable for Capital Gains Tax (CGT). Navigating the rules, deadlines, and HMRC reporting requirements can be daunting, especially with the strict 60 day reporting window now in place. At Goldcrest Accountancy, we specialise in making the process stress‑free, accurate, and fully compliant.
In this guide, we’ll explain what CGT on property is, when it applies, and how our expert team can save you time, money, and headaches.
What Is Capital Gains Tax on Property?
Capital Gains Tax is a levy on the profit you make when you sell (or ‘dispose of’) an asset that has increased in value. For property, this typically applies when:
You sell a buy‑to‑let or second home
You dispose of inherited property
You sell land or commercial premises
You gift property (in some cases)
Your main residence is usually exempt under Principal Private Residence Relief, but other properties can trigger a CGT liability. Your main residence may still be liable to CGT if you haven’t lived in it for your entire ownership period.
The 60‑Day Reporting Rule
Since April 2020, UK residents selling a residential property that incurs CGT must:
Report the gain to HMRC within 60 days of completion
Pay the tax within the same 60 day period
Missing this deadline can result in penalties and interest charges, even if you didn’t realise you owed tax.
Why CGT on Property Can Be Complex
Several factors can make CGT calculations tricky:
Determining the gain: You may deduct allowable costs (e.g., purchase price, legal fees, improvement costs) from the sale proceeds.
Reliefs and exemptions: Principal Private Residence Relief, Lettings Relief, and other allowances can reduce your bill.
Joint ownership: Gains should be split according to ownership shares.
Changing tax rates: Residential property gains are taxed at 18% or 28%, depending on your income tax band. You can also use your £3,000 annual CGT exemption if it has not been used on other capital gains within the period.
How Goldcrest Accountancy Helps with CGT on Property
At Goldcrest, we understand that selling property is often a major life event and the last thing you need is a stressful tax process. Here’s how we make it easier:
1. Expert CGT Calculations
We’ll calculate your gain accurately, ensuring all allowable costs and reliefs are applied. This can significantly reduce your tax bill.
2. HMRC 60‑Day Reporting
We handle the entire online submission process, ensuring your return is filed correctly and on time.
3. Tailored Advice
Every client’s situation is unique. Whether you’re selling a single buy‑to‑let or multiple properties, we’ll provide advice that fits your circumstances.
4. Avoiding Penalties
By managing deadlines and compliance, we help you avoid costly HMRC penalties.
Step‑by‑Step: Our CGT Service Process
Step 1: Initial Consultation
We start with a conversation, in plain English, to understand your property sale, costs, and personal tax position.
Step 2: Data Gathering
You provide the key figures: purchase price, sale price, legal fees, improvement costs, and we’ll discuss any relevant reliefs.
Step 3: Calculation & Review
We calculate your gain, apply reliefs, and confirm the CGT due.
Step 4: HMRC Submission
We complete and submit your CGT return on your behalf. We give you simple payment instructions to ensure any taxes due are paid to HMRC within the 60 day time limit.
Common Scenarios We Handle
Inherited Property Sales
We’ll help establish the correct base value (probate value) and apply any reliefs.
Buy‑to‑Let Disposals
We ensure all allowable expenses are claimed, including improvement costs.
Gifting Property
We advise on potential CGT implications and reporting requirements.
Why Choose Goldcrest Accountancy?
Chartered Accountants: We’re a member firm of the Institute of Chartered Accountants in England and Wales, committed to the highest professional standards.
Personal Approach: We tailor our communication style to you, no matter whether you prefer technical detail or plain English.
Technology‑Driven: We use secure online portals and cloud accounting tools for fast, safe document sharing.
Responsive & Trustworthy: We believe in regular communication to enable tax planning, not tax panicking.
Capital Gains Tax FAQs
Do I always have to pay CGT on property?
Not if it’s your main home and qualifies for Principal Private Residence Relief. Other exemptions may apply.
What happens if I miss the 60 day deadline?
HMRC can issue penalties and charge interest on late payments.
Can I offset losses?
Yes! Capital losses from previous asset disposals can be used to reduce your CGT bill.
Get Started Today
If you’ve sold or are planning to sell a property that isn’t your main home, don’t leave CGT to chance. Goldcrest Accountancy will ensure your gain is calculated correctly, reliefs are maximised, and your CGT Return is filed on time with HMRC.
📞 Call us on 01904 222 088 or 📧 email us at lawrence@goldcrestaccountancy.co.uk to arrange your consultation. Let us take the stress out of Capital Gains Tax.