Capital Gains Tax Advice & Calculation Services

What is Capital Gains Tax?

Capital gains tax is a tax on the profit you make when you sell or dispose of an asset that has increased in value. It applies to assets such as property (that is not your main home), shares, and certain other investments. The taxable capital gain is typically the difference between what you paid for the asset (plus allowable costs) and what you sold it for. Not all gains are taxed: you have an annual exempt amount (CGT allowance) each year, and some assets and reliefs can reduce or eliminate your liability.

CGT Rates and Allowances (current tax year)

For 2025/26, the capital gains tax allowance (annual exempt amount) is £3,000 (check GOV.UK for latest). Above this, capital gains tax rates depend on your income tax band and the type of asset:

• Other assets (e.g. shares): 10% for basic-rate taxpayers, 20% for higher and additional-rate taxpayers.
• Residential property: 18% for basic rate, 24% for higher and additional rate.

Your income (including taxable income for the year) is used to determine which band applies. Capital gains tax brackets can effectively push part of your gain into a higher band, so planning matters.

When Do You Pay Capital Gains Tax?

You usually report capital gains on your Self Assessment tax return and pay any capital gains tax due by 31 January after the end of the tax year. For disposals of UK residential property, you may need to report and pay within 60 days using the UK Property Disposal Service. Late reporting can lead to interest and penalties, so it is important to keep records and seek advice if unsure.

How to Calculate Capital Gains Tax

To calculate capital gains tax you need to: (1) work out your gain (sale proceeds minus purchase price and allowable costs); (2) deduct any reliefs and losses; (3) subtract your annual CGT allowance; (4) apply the correct CGT rate to the remaining taxable gain. Our free capital gains tax calculator does this for you and gives an estimate of tax due. For complex situations or corporate gains tax, professional advice is recommended.

CGT Reliefs and Exemptions

Several reliefs can reduce your capital gains tax: Private Residence Relief (main home), Business Asset Disposal Relief (formerly Entrepreneurs’ Relief), Gift Hold-Over Relief, and others. ISA and pension gains are generally exempt. Chattels sold for £6,000 or less may also be exempt. We can help you identify which reliefs apply and how to plan disposals to use your CGT allowance and reliefs effectively.

Our Capital Gains Tax Services

We offer capital gains tax advice, CGT calculation support and planning for individuals and trustees. Whether you need a one-off capital gains tax estimator for a disposal or ongoing advice for multiple assets, we can help. Services include: review of gains and allowable costs; use of losses and reliefs; reporting and payment deadlines; and structuring for future disposals. We serve clients across London and the UK.