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Do I need an accountant for capital gains tax?

What is Capital Gains Tax?

Capital Gains Tax (CGT) is a tax you pay on the profit made when you sell or dispose of an asset that has increased in value. You’re taxed only on the gain — not the total sale amount. This can apply to property, shares, personal items, or other valuable assets.


Do I Need an Accountant for Capital Gains Tax?

CGT is full of complex rules, allowances, and exemptions. Working with a specialist Capital Gains Tax accountant can help you reduce your liability, ensure compliance, and avoid overpaying. At Easy Accounting Services, we offer tailored advice and support to help you understand and manage your CGT obligations.

Do I need an accountant for capital gains tax

What Is the Annual CGT Allowance?

In the UK, individuals can make up to £3,000 in capital gains tax-free each tax year. For trusts, the allowance is £1,500. Any gains above these limits may be subject to tax, with rates determined by your income and the type of asset sold.


Capital Gains Tax Rates (2024/25)

Asset TypeBasic RateHigher Rate
Residential Property18%24%
Shares18%24%
Cryptocurrency18%24%
Other Assets18%24%

What Assets Are Subject to Capital Gains Tax?

You may pay CGT on:

  • Property that isn’t your main home
  • Personal items worth over £6,000 (excluding cars)
  • Shares not held in an ISA or pension
  • Business assets
  • Art, antiques, and collectibles

Some main homes may also be subject to CGT in certain cases.


When Is Capital Gains Tax Charged on Property?

You may owe CGT on your home if:

  • You didn’t live in it full-time
  • It’s not your only residence
  • It was rented (excluding lodgers)
  • Part of it was used for business
  • The total land exceeds 5,000m²

Private residence relief may apply in some cases — we can help assess eligibility.


Reasons You Might Pay Capital Gains Tax

You may incur CGT if you:

  • Sell a second home or investment property
  • Dispose of business assets or shares
  • Inherit property and later sell it
  • Gift valuable assets
  • Sell high-value personal items

Special reliefs or exemptions may apply — speak to a tax advisor.


How Can Easy Accounting Services Help?

Our tax specialists offer clear, jargon-free advice. We’ll:

  • Help calculate your gains and reliefs
  • Complete your Self Assessment
  • Ensure you meet HMRC deadlines
  • Offer proactive planning for future disposals
  • Provide advice for non-residents, landlords, and businesses

Business Asset Disposal Relief

Formerly Entrepreneurs’ Relief, this allows qualifying business owners to pay just 10% CGT on gains. To qualify, you must:

  • Have owned the business (or 5%+ of shares in a trading company) for 2+ years
  • Be a sole trader, partner, or employee
  • Sell within 3 years of trading ending (for asset relief)

Capital Gains Tax for Landlords

If you’re selling a buy-to-let property, CGT will likely apply. Timing the sale, using available reliefs, and offsetting expenses could reduce your bill. We offer CGT planning advice specifically for landlords and property investors.


Private Residence Relief

You won’t normally pay CGT when selling your main home. Private residence relief exempts the gain from tax, as long as the property was your sole or main residence throughout ownership. Partial use for business or letting can affect this.


Lettings Relief

Lettings relief was reduced in April 2020. Now it applies only if you lived in the property at the same time as your tenant. Speak to a tax advisor to check if you’re eligible.


CGT on Inherited or Overseas Properties

  • Inherited Property: No CGT is due on inheritance, but you may pay CGT if you later sell it.
  • Overseas Property: UK residents are liable for CGT on worldwide gains. In some cases, you may face tax in both countries. Relief from double taxation might apply.

Capital Gains Tax for Non-UK Residents

Even if you live abroad, you may owe CGT on UK residential and commercial property. Tax must be reported and paid within 60 days of sale. Special rules apply if you’ve used the property for business or it’s over 0.5 hectares.


What Records Do I Need to Keep?

You should retain:

  • Purchase receipts or contracts
  • Improvement or renovation costs
  • Legal or professional fees
  • Stamp Duty receipts
  • Valuation reports (if needed)

Good record-keeping helps ensure you only pay the CGT that’s truly owed.


Reporting Capital Gains or Losses

To report a gain:

  • Use HMRC’s CGT online service
  • Include it in your Self Assessment if you file one
  • Pay within the required timeframe (e.g. 60 days for property)

If you made a loss, report it to offset future gains — you have 4 years to declare a loss.


How Do HMRC Know About Capital Gains?

HMRC uses various checks including property records, investment data, and even social media. If under-reporting is suspected, investigations can go back up to 20 years. It’s always safer to be upfront and get advice if unsure.


Do I Have to Pay CGT Immediately?

For UK property sales, CGT must be reported and paid within 60 days of completion. For other assets, payment is made after reporting via your tax return or online CGT service.


Can I Avoid Paying Capital Gains Tax?

While CGT is a legal obligation, there are several legitimate ways to reduce your bill — including using allowances, reliefs, and strategic planning. A tax specialist can help ensure you don’t pay more than necessary.


Ready for Expert Help?

At Easy Accounting Services, our accountants and advisors are here to help you understand and manage Capital Gains Tax. Whether you’re selling property, shares, or a business, we can support you every step of the way. Get in touch today for a free initial consultation.


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