Capital Gains Tax Knowledge Base

What Is Capital Gains Tax?

The basics: what CGT is, when it applies, and current rates.

Who Pays CGT?

Individuals, trustees, personal representatives — and who is exempt.

CGT Rates (2025/26)

18% and 24% rates from October 2024, plus BADR at 10%.

Annual Exempt Amount

The £3,000 tax-free allowance and how to make the most of it.

What Counts as a Disposal?

Sales, gifts, exchanges, insurance payouts, and deemed disposals.

CGT vs Income Tax

The capital vs revenue distinction and why it matters.

How to Calculate a Capital Gain

Proceeds minus allowable costs: the formula with worked examples.

Allowable Costs & Deductions

Acquisition, improvement, and incidental costs you can deduct.

Part Disposals

The A/(A+B) formula for selling part of an asset.

Assets Acquired Before 1982

Rebasing to 31 March 1982 market value for older assets.

Indexation Allowance (Companies)

Inflation relief for corporate gains, frozen at December 2017.

CGT When You Sell a Rental Property

Rates, allowable costs, and reporting for buy-to-let sales.

The 60-Day CGT Property Report

Who must file, the 60-day deadline, and how to report.

Private Residence Relief (PRR)

How PRR exempts your main home from Capital Gains Tax.

Lettings Relief

Reduced CGT when you’ve both lived in and let a property.

Selling a Second Home

CGT on holiday homes, second properties, and nomination elections.

CGT on Inherited Property

Using probate value as base cost when selling an inherited property.

Non-Resident CGT on UK Property

CGT for overseas owners selling UK residential or commercial property.

Mixed-Use Properties & CGT

Apportioning gains between residential and commercial use.

CGT on Shares

How CGT applies when you sell shares: rates and matching rules.

Share Matching & Section 104 Pools

Same-day, 30-day bed & breakfasting, and pool averaging rules.

CGT on Crypto & Digital Assets

HMRC rules for crypto disposals: pooling, DeFi, NFTs, and mining.

ISAs, Pensions & Tax-Free Wrappers

How ISAs and pensions shield your investments from CGT.

Employee Share Schemes & CGT

CGT treatment of EMI, CSOP, SIP, and SAYE share options.

Business Asset Disposal Relief

BADR: the 10% CGT rate on qualifying business disposals up to £1m.

Investors’ Relief

10% CGT on qualifying shares in unlisted trading companies.

Holdover Relief (Gift Relief)

Deferring CGT when gifting business assets or transferring to trusts.

Rollover Relief

Defer CGT when you replace qualifying business assets.

EIS & SEIS CGT Exemption

CGT exemption on disposal and deferral relief on reinvestment.

Private Residence Relief (Detailed)

Advanced PRR: periods of absence, deemed occupation, and two homes.

Incorporation Relief

Section 162: deferring CGT when incorporating a sole trade.

Selling a Sole Trader Business

CGT on individual asset disposals, goodwill, and BADR.

Goodwill & Intangible Assets

CGT on goodwill for individuals and related party restrictions.

BADR for Partners

How BADR applies to partnership disposals and retirement.

Incorporating a Business: CGT

CGT when moving from sole trader to limited company.

Capital Losses: How to Use Them

Offsetting losses against gains in the current year.

Carrying Forward Losses

Unlimited carry forward of unused capital losses to future years.

Negligible Value Claims

Claiming a loss on worthless assets without actually selling them.

Reporting CGT on Self Assessment

Using the SA108 capital gains pages on your tax return.

60-Day Property Return (Step-by-Step)

Filing the 60-day return through your HMRC online account.

Paying Your CGT Bill

Payment methods, references, and when to pay.

CGT Payment Deadlines

60-day property deadline, 31 January SA deadline, and more.

CGT on Divorce & Separation

No gain/no loss transfers between spouses and the 2023 rule changes.

CGT for Trusts & Estates

Trustee rates, reduced annual exemption, and personal representatives.

CGT for Non-UK Residents

When non-UK residents are liable to CGT on UK assets.

CGT Rates History

Historical CGT rates from 2008 to the current year.

CGT Glossary

Plain-English definitions of common CGT terms and acronyms.