You pay capital gains taxes when you dispose of Property, Stocks, Cryptoassets and Personal Assets (most personal items worth more than £6,000 apart from cars would incur this tax). Property that is not considered your main home is also a common capital gain that may need to be reported.
How to Report?
How you report will depend on whether you are disposing of UK Property or not
UK Property Capital Gains Tax due?
If you have sold a property in the UK on or after the 6 April 2020, you must report and pay any capital gains tax due within:
- 60 days if the completion date was on or after 27 October 2021.
- 30 days of selling if the completion date was between 6 April 2020 and 26 October 2021.
This can be reported by completing a Capital Gains Tax return. We can take all the stress out of your CGT Return and complete for you ensuring you maximise your reliefs/allowances. If you require advice/guidance you can contact us direct or book a free 30 minute consultation here.
How to Report any other Capital Gains Tax due?
If your capital gain is not from a residential property sold after 6 April 2020, you can report your gain:
- in a Self Assessment tax return
- using the ‘real time’ Capital Gains Tax Service
Before you start, you’ll need to work out if you need to pay and how much you owe.
Examples of Other Capital Assets:
- Stocks
- Bonds
- Exchange-traded funds
- Mutual Funds
- Crypto
- Jewellery
- Collectables
We can advise here at SC Tax Advisers and Accountants, certain capital gains are subject to specific tax rules, so its always wise to check with a tax professional to avoid paying extra unnecessary tax, free 30 minute consultation here.
Private Residence Relief
You do not pay Capital Gains Tax when you sell (or ‘dispose of’) your home if all of the following apply:
- you have one home and you’ve lived in it as your main home for all the time you’ve owned it
- you have not let part of it out - this does not include having a lodger
- you have not used a part of your home exclusively for business purposes (using a room as a temporary or occasional office does not count as exclusive business use)
- the grounds, including all buildings, are less than 5,000 square metres (just over an acre) in total
- you did not buy it just to make a gain
Capital Gains Tax Rates?
For the 2022/2023 tax year capital gains tax rates are:
- 10% (18% for residential property) for your entire capital gain if your overall annual income is below £50,270.
- 20% (28% for residential property) for your entire capital gain if your overall annual income is above the £50,270 threshold.
Individuals have a £12,300 capital gains allowance. This means your capital gains up to £12,300 are tax free.
Normally you wont have to pay any capital gains when selling your main home.
The rate of CGT differs from income tax rates and largely depends on what asset you are selling.
Capital Gains Tax Rates
Asset | Basic Rate | Higher Rate |
Shares | 10% | 20% |
Residential Property | 18% | 28% |
Crypto | 10% | 20% |
Other | 10% | 20% |
Tax Free Allowance
Associated to | Allowance Amount |
Personal | £12,300 |
Trusts | £6,125 |
Working Out Your Gain
Your gain is usually the difference between what you paid for your home and what you sold it for. Use the market value instead if:
- it was a gift (there are different rules if it was to your spouse, civil partner or a charity)
- you sold it for less than it was worth to help the buyer
- you inherited the asset (and do not know the Inheritance Tax value)
- you owned it before April 1982
Deducting costs
You can deduct costs of buying, selling or improving your property from your gain. For example estate agent, solicitor fees and any home improvements. (excluding normal maintenance costs like painting).
My Digital Accountant
Date Published 13/02/2023
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