Capital Gains Tax
TAX ADVISER & ACCOUNTANT | HMRC AUTHORISED AGENT | COMPANIES HOUSE ACSP
London | Serving individuals and companies in the UK and overseas
25+ Years' Experience | ICO Registered | HMRC AML Supervised
The sale of a property or shares triggers its own reporting regime and deadlines. The gain depends on residence status, the history of the asset, the reliefs available and, for overseas assets, the exchange rates on the dates of purchase and sale.
Disposals of UK and overseas property and shares
TAX ADVISER & ACCOUNTANT | HMRC AUTHORISED AGENT | COMPANIES HOUSE ACSP
What determines your position
Residence determines the scope. UK residents are taxable on gains worldwide. Non-residents are taxable on disposals of UK land and property and of interests in UK property-rich entities.
The 60-day deadline. Where Capital Gains Tax is due on UK residential property, a return and payment are due within 60 days of completion. Non-residents must report any disposal of UK land within 60 days, even where no tax is due.
Exchange rates change the result. For overseas assets, costs and proceeds are converted into sterling at the rates on the dates of acquisition and disposal. Currency movements can create a gain in sterling where there is none in local currency, or remove one.
Reliefs depend on the history. Private residence relief depends on the periods the property was occupied as a main home. Lettings relief is now limited to cases where the owner shared occupation with the tenant.
Rates depend on income. For disposals from 30 October 2024, gains are taxed at 18% or 24%, depending on the individual's taxable income. The annual exempt amount is £3,000.
Tax paid abroad is credited. Foreign tax paid on the same gain may be credited against the UK liability, up to the amount of UK tax on that gain.
Leaving the UK briefly does not remove the charge. Individuals who return to the UK within five years may be taxed on certain gains made while non-resident.
Capital Gains Tax on UK and overseas property forms part of the practice's work for individuals in the UK and abroad. Each gain is calculated from the documents, with residence and reliefs established first. All matters are handled in confidence.
The disposals we handle
UK residential property
Sales of second homes and let properties. We calculate the gain and file the 60-day return with payment.
Non-resident disposals
Sales of UK property by individuals living abroad, including rebasing and the 60-day reporting requirement.
Overseas
property
Property sold abroad by UK residents. We apply the exchange rates, calculate the gain and claim foreign tax credit relief.
Main residence and reliefs
Periods of occupation, absence and letting. We establish which reliefs apply and to what extent.
Shares and business assets
Disposals of shares and business interests, including Business Asset Disposal Relief where the conditions are met.
Unreported or incorrect gains
Gains that were not reported or were calculated incorrectly. We establish the position and correct it with HMRC.
From documents to filing
01
SUBMISSION
Provide the purchase and sale documents, costs and details of residence.
02
REVIEW
The history of the asset, periods of occupation and the residence position are examined.
03
WRITTEN OPINION & TERMS
A written opinion sets out the gain, the reliefs available, the deadlines, and the scope and fees of the work.
04
FILING
The 60-day return or the Self Assessment entries are prepared and filed.
05
PAYMENT
The amount and payment deadlines are confirmed, and the position is recorded for future years.
