Personal tax services

Capital Gains Tax

Capital Gains Tax is one of the most complex aspects of the British tax system, applying to sales of assets such as stocks, bonds, precious metals and property. The amount of tax owed depends on whether you pay higher rate or basic rate income tax, and whether you are selling a residential property or some other chargeable asset.

Do I need to pay Capital Gains Tax?

You won’t normally need to pay CGT when selling your home, however any additional properties that are not considered your main residence will incur tax. There are currently two tax reliefs relating to CGT, both applicable to landlords: Private Residence Relief and Lettings Relief.

From April 2020, Private Residence Relief will apply to the full period a taxpayer lived in the property as their principle residence plus the final nine months of occupancy. Changes to Lettings Relief from April 2020 will mean that only landlords who share the property with the tenant can claim, effectively abolishing the relief for most landlords.

How do I submit a CGT return?

In 2016, the Government introduced online CGT submissions to its personal tax account system, allowing anyone disposing of assets to report their CGT liability in real time. This has increased the likelihood of taxpayers making innocent mistakes on their tax return and triggering a CGT enquiry. If you are concerned about a Capital Gains Tax bill or have received correspondence from HMRC that an enquiry into your CGT affairs has been opened, get in touch with a professional tax advisor today.

Tax Champion’s experienced CGT advisors will help you to navigate the maze of tax legislation surrounding the sale of assets, and support you through the complexities of a CGT enquiry.

Next steps

Get in touch to find out how our expert tax advisors could help you with a CGT enquiry, email champion@taxchampion.co.uk or call 0800 195 8048.

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Interested in
finding out more?

We’re looking forward to helping you
achieve your financial goals.

Interested in
finding out more?

We’re looking forward to helping you achieve your financial goals.