Capital Gains Tax

Capital Gains Tax (CGT) is a tax on the profit you make when you sell or dispose of an asset that has increased in value. You pay CGT on the gain, not the total sale price. Common taxable disposals include selling a second home, buy-to-let property, shares, business assets, cryptocurrency, or valuable personal items. CGT applies whether you sell, gift, swap, or transfer an asset (except to a spouse or civil partner). Residents of Ealing, Southall, and Uxbridge disposing of assets must report and pay CGT to HMRC within strict deadlines.

For the 2025/26 tax year, the annual CGT tax-free allowance is just £3,000 — dramatically reduced from £12,300 only a few years ago. Above this threshold, CGT rates are:

• 18% for basic-rate taxpayers (on residential property and other assets)
• 24% for higher and additional-rate taxpayers (on residential property)
• 24% on other assets such as shares and business disposals
• 14% for qualifying Business Asset Disposal Relief (rising to 18% from April 2026)

With allowances slashed, many Ealing, Southall, and Uxbridge residents now face unexpected CGT bills that expert planning can significantly reduce.

Generally, no — your main home is protected by Private Residence Relief (PRR), meaning no CGT is due when you sell the property you’ve lived in throughout your ownership. However, CGT may apply if you’ve:

• Let the property out for part of the time
• Used part of it exclusively for business
• Owned a very large garden (over 0.5 hectares)
• Been absent for extended periods without qualifying reasons
• Owned multiple properties and not nominated a main residence

Given rising West London property values, PRR eligibility should always be confirmed with a qualified accountant.

If you sell a UK residential property that isn’t your main home — such as a buy-to-let, second home, or inherited property — you must report the gain and pay any CGT due within 60 days of completion. This strict HMRC deadline catches many landlords and sellers off-guard, with late submissions triggering automatic penalties and interest. The rule applies to all disposals in Ealing, Southall, Uxbridge, and across the UK. Advantax Accountants manages the entire 60-day reporting process on your behalf, ensuring accurate calculations, timely submission, and maximum relief.

CGT on a buy-to-let is calculated by subtracting the following from your sale price:

• Original purchase price
• Stamp Duty and legal fees paid when buying
• Estate agent and legal fees on sale
• Capital improvement costs (extensions, new kitchens/bathrooms — not general repairs)
• Your annual CGT allowance (£3,000)

The remaining gain is taxed at 18% or 24%, depending on your income band. With many Ealing, Southall, and Uxbridge landlords sitting on substantial capital growth, meticulous expense tracking can save thousands — our specialists ensure every allowable deduction is claimed.

Yes. Profits from selling shares, funds, ETFs, and cryptocurrency (including Bitcoin, Ethereum, and other digital assets) are subject to Capital Gains Tax above your annual £3,000 allowance. HMRC now actively matches crypto exchange data with tax returns, and undeclared gains can trigger serious investigations and penalties. Shares held within ISAs or pensions are CGT-free, making these excellent tax-efficient wrappers. Our Ealing, Southall, and Uxbridge advisers help local investors track disposals, calculate pooled costs correctly, and apply “Bed and ISA” strategies to minimise future CGT liabilities.

Business Asset Disposal Relief (BADR) — formerly Entrepreneurs’ Relief — allows qualifying business owners to pay a reduced CGT rate of just 14% (rising to 18% from April 2026) on up to £1 million of lifetime gains when selling their business or shares. To qualify, you must have owned the business or held at least 5% of shares for a minimum of 2 years, and been an officer or employee. BADR is particularly valuable for Ealing, Southall, and Uxbridge entrepreneurs planning retirement, business exits, or succession — our specialists ensure eligibility and maximise your relief.

Absolutely. Proven, HMRC-approved strategies to reduce CGT include:

• Transferring assets to your spouse or civil partner (no CGT between them)
• Using both partners’ annual £3,000 allowances
• Spreading disposals across tax years to use multiple allowances
• Offsetting gains with capital losses from previous or current years
• Investing in EIS, SEIS, or VCT schemes for CGT deferral
• Making pension contributions to reduce taxable income band
• Using the “Bed and ISA” technique for shares

Strategic planning before selling is always more effective than reacting afterwards.

If you are UK tax resident, you generally pay CGT on your worldwide gains, including property sold in India, Pakistan, Dubai, or anywhere overseas. This is especially relevant for many Southall, Ealing, and Uxbridge residents with international property portfolios or inherited assets abroad. Double taxation treaties typically prevent you from being taxed twice on the same gain, and foreign tax paid can often be credited against your UK liability. Our advisers specialise in cross-border CGT matters, helping West London clients navigate complex international disposals with full HMRC compliance.

Advantax Accountants brings 18 years of local expertise in UK Capital Gains Tax to clients across Ealing, Southall, and Uxbridge. We are ACCA-approved, CIMA-certified, and Xero-accredited, trusted by 900+ local clients with everything from buy-to-let disposals and share portfolios to business exits and overseas property sales. Our approach combines forensic accuracy with proactive planning — we don’t just calculate your CGT, we actively work to reduce it. Whether you prefer meeting at our local offices or using our secure online CGT service, we make compliance simple, timely, and genuinely cost-effective.

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