CGT on property is the tax you pay on the profit made when selling or transferring a UK property that has increased in value. It usually applies to second homes, buy-to-lets, or investment properties rather than your main residence. You must report and pay CGT within 60 days of completion, and reliefs such as Private Residence Relief or Lettings Relief can help reduce the tax payable.
Understanding CGT on property is crucial if you’re selling, gifting, or transferring a property that’s increased in value. Whether you’re a homeowner, landlord, or investor, the rules can be complex – and getting them wrong could cost you.
At Naail & Co Chartered Certified Accountants and Tax Advisors, we help clients calculate, report, and plan for Capital Gains Tax (CGT) on property efficiently and compliantly. Our team ensures you make the most of available reliefs and avoid unnecessary tax exposure.
CGT on property applies when you dispose of a property that has gained value since you bought it. The tax is based on the profit (the “gain”) you make – not the total sale price.
You may need to pay CGT when you:
If the property is your main residence, you may qualify for Private Residence Relief, which can significantly reduce or even eliminate the tax.
Property tax can be nuanced – a short discussion with our tax specialists at Naail & Co can help clarify your position and save you thousands in potential CGT.
You may need to pay CGT on property if you are:
Even if you live abroad, you may still have UK reporting obligations. Non-residents must report the sale of UK property to HMRC, even if there’s no gain or tax due.
If you’re unsure about your residency status or reporting duties, our international tax team at Naail & Co can assess your situation and ensure full compliance.
Since 6 April 2020, individuals and trustees selling UK residential property must report and pay CGT within 60 days of completion.
Failing to do so can lead to penalties and interest, even if the gain was small or reliefs applied.
To meet your obligations, you must:
If you’ve already filed a Self-Assessment tax return, you still need to make this separate 60-day submission.
Naail & Co can handle the entire process — from working out the gain to submitting the report to HMRC securely and on time.
Calculating CGT on property involves several steps:
Example:
If you bought a second home for £200,000 and sold it for £500,000, your total gain is £300,000. After deducting £20,000 of allowable costs and your £3,000 annual exemption, you’d pay CGT on £277,000 at 18% or 24%, depending on your income level.
Every property and taxpayer is different. Naail & Co’s specialists can calculate your exact CGT liability and identify potential tax-saving opportunities.
CGT on property rates vary based on your income tax band and the type of property sold:
Key Reliefs and Allowances
Reliefs can make a significant difference in your tax bill. The Naail & Co team can review your situation and advise on how best to apply these reliefs before you sell.
Avoiding simple errors—like missing the 60-day deadline or misunderstanding relief rules—can prevent HMRC enquiries and unnecessary penalties.
If you’re about to dispose of property, speak to Naail & Co first to ensure your tax affairs are in order.
There are legitimate ways to reduce or defer CGT on property, such as:
Effective planning can help you legally minimise your CGT bill and retain more of your profits.
Naail & Co Chartered Certified Accountants can guide you through every step – from planning a future sale to structuring ownership efficiently.
At Naail & Co, we specialise in Capital Gains Tax on property for both individuals and companies. Our experts provide:
With extensive experience in UK tax and property matters, we help clients stay compliant, efficient, and confident when dealing with HMRC.
If you’re planning to sell, gift, or transfer property — speak with Naail & Co today. Your initial consultation is free, and our fixed-fee options make professional advice accessible for everyone.
Before you dispose of any UK property:
Taking professional advice early can make all the difference.
Contact Naail & Co Chartered Certified Accountants today to discuss your property sale and ensure your CGT position is managed properly.
CGT on property is one of the most common yet misunderstood areas of UK taxation. The rules change regularly, and even small oversights can result in penalties or overpayment. Whether you’re selling a second home, transferring a rental property, or managing a complex portfolio, expert guidance ensures you stay compliant and minimise your tax exposure.
Naail & Co Chartered Certified Accountants and Tax Advisors can help you understand your CGT position, calculate your liability accurately, and claim all available reliefs.
Get in touch today to book your free initial consultation and let our team handle your CGT on property with confidence.
CGT on property is the tax you pay on the profit made when selling, gifting, or transferring a property that has increased in value. It applies mainly to second homes, buy-to-lets, and investment properties, not usually your main residence.
You calculate CGT on property by taking the sale price (or market value), deducting allowable costs such as the purchase price, legal fees, and improvements, and applying any reliefs or exemptions. The remaining gain is taxed at 18% or 24%, depending on your income level.
If you sell or transfer a UK residential property that triggers a gain, you must report it to HMRC and pay any tax within 60 days of completion. This rule applies even if you also complete a Self-Assessment tax return later in the year.
For the 2024/25 tax year, CGT on residential property is charged at 18% for basic rate taxpayers and 24% for higher or additional rate taxpayers. The rate depends on your total taxable income and the size of the gain.
If your property has always been your main residence, it is generally exempt under Private Residence Relief. However, partial business use, letting, or long absences can reduce the exemption and trigger some CGT.
Each individual has an annual CGT exemption of £3,000 for 2024/25. This amount can offset part of your property gain before tax is calculated. Couples can double this by owning property jointly.
You can reduce CGT by using reliefs such as Private Residence Relief, Lettings Relief, or spousal transfers. Planning the timing of the sale or offsetting losses from other assets can also lower your tax bill.
The team at Naail & Co can help you plan strategically before completing a sale.
Gifting property (other than to a spouse) is treated as a disposal at market value, meaning CGT on property may apply even if you receive no money. You may also need to consider inheritance tax implications.
Non-UK residents must report and pay CGT on disposals of UK land or property, including residential and commercial assets. Reporting must still be done within 60 days, regardless of whether tax is owed.
You can deduct acquisition and disposal costs, including:
Companies do not pay CGT in the same way as individuals; instead, gains on property sales are subject to Corporation Tax on chargeable gains. Naail & Co can calculate and report this accurately for your company.
Late filing or payment can lead to HMRC penalties and interest. If you’ve missed the deadline, contact Naail & Co immediately — we can help you file a late report, mitigate penalties, and manage HMRC correspondence.
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