Capital Gains Tax (CGT) in the UK is applied to the profit made when you sell or dispose of an asset that has increased in value. To calculate CGT, you first determine the gain by subtracting the asset’s original purchase price (or cost basis) and any allowable costs, such as improvements or selling expenses, from the sale price. If you qualify for certain exemptions, such as the Annual Exempt Amount (currently £6,000 for individuals) or Private Residence Relief for a primary home, these can reduce your taxable gain. CGT rates are based on your income tax band—10% for basic rate taxpayers and 20% for higher rate taxpayers on most assets, but higher rates apply to residential property not used as a primary residence (18% for basic rate taxpayers and 28% for higher rate taxpayers). Business assets may be eligible for further reliefs like Entrepreneurs’ Relief , which reduces the tax rate. Once the gain is calculated, it must be reported to HMRC, and any tax owed should be paid within 30 days of the sale. We offer expert guidance to ensure accurate calculations and maximize any exemptions or reliefs, helping you navigate the complexities of CGT and minimize your tax liability.

In the UK, Capital Gains Tax (CGT) is applied to the profit made when you sell or dispose of an asset that has increased in value. The calculation involves determining the gain, which is the difference between the sale price and the asset’s original purchase price, minus any allowable costs such as improvements or selling expenses. Certain exemptions and reliefs can reduce the amount of CGT you pay, including the Annual Exempt Amount (currently £6,000 for individuals) and Private Residence Relief for your primary home. CGT rates depend on your income tax band: 10% for basic rate taxpayers and 20% for higher rate taxpayers on most assets, with higher rates of 18% and 28% for residential property that is not your main home. Business assets may qualify for Entrepreneurs’ Relief , offering reduced tax rates. Once your gain is calculated, it must be reported to HMRC, with tax owed due within 30 days of the sale. Our experts provide tailored guidance to ensure accurate CGT calculations and help you take advantage of available exemptions and reliefs, minimizing your tax liability and ensuring compliance with UK tax laws.