Property, investments, business assets and international disposals
Capital Gains Tax Advice, Calculations and Reporting
Capital Gains Tax advice should establish the disposal date, ownership, allowable cost, relief position and reporting route before the tax is calculated. We prepare property, share, cryptoasset and business-disposal calculations for individuals, joint owners, non-residents and private clients across Exeter and the surrounding Devon districts.
Direct answer
How Capital Gains Tax Is Calculated and Reported
Capital Gains Tax is generally charged on the net gain arising when an individual disposes of a chargeable asset. The calculation starts with disposal proceeds—or market value where required—and deducts the allowable acquisition cost, incidental costs and qualifying enhancement expenditure.
Allowable losses and statutory reliefs are then applied before the Annual Exempt Amount and the relevant tax rate. The final reporting route depends on the asset, the owner's residence, the completion date and whether the individual is already required to submit a Self Assessment return.
The gain is not simply sale price less purchase price
Market-value rules, part disposals, share pooling, improvement costs, losses and reliefs can materially change the taxable amount.
Capital Gains Tax can have an earlier reporting deadline
UK residential property can require a separate report and payment within 60 days rather than waiting for the annual tax return.
Each beneficial owner has a separate tax position
Joint owners, spouses, trustees, personal representatives, companies and non-residents do not all use the same calculation or reporting route.
Disposals requiring technical review
Capital Gains Tax Advice for Different Assets and Ownership Structures
The tax treatment follows the legal and beneficial ownership, disposal event, asset history and available reliefs. The categories below show why one generic Capital Gains Tax calculation is rarely sufficient.
Capital Gains Tax on UK Property
The calculation may involve purchase and sale costs, enhancement expenditure, rental periods, losses, Private Residence Relief and a 60-day reporting obligation.
Private Residence Relief and Letting Periods
Occupation dates, absences, the final nine months, exclusive business use, land and shared occupancy with tenants can change the exempt proportion.
Co-Owners, Spouses and Separated Couples
Beneficial ownership, historic base cost, occupation and the timing of transfers determine each person's gain and whether no-gain, no-loss treatment applies.
UK Property and Land Sold from Overseas
A non-resident must report UK property or land even where no tax is due. Rebasing, time apportionment, treaty issues and later Self Assessment reporting may need review.
Share Pools, Reorganisations and Investment Disposals
Same-day acquisitions, the 30-day rule, the Section 104 pool, rights issues, takeovers and earlier losses must be reconciled before the gain is calculated.
Token Disposals, Exchanges and Pooling
Selling, exchanging, gifting or spending tokens can create disposals. Sterling values, transaction fees, same-day matching, 30-day matching and pooled costs are required.
Business Sales and Company Shares
Business Asset Disposal Relief, rollover relief, incorporation relief, substantial shareholding and employment-related share rules require separate eligibility analysis.
Market-Value Disposals and Deferred Gains
Gifts can be taxed at market value. Hold-over relief, spouse rules, trust appointments, probate values and beneficiary disposals must be considered before assets are transferred.
The computation
What We Check in a Capital Gains Tax Calculation
The taxable gain depends on more than the sale proceeds. Each part of the computation must be supported by the ownership records and the tax rules applying to that asset.
Disposal date and proceeds
Contracts, completion, market-value rules, deferred consideration and part disposals are reviewed.
Acquisition cost and history
Purchase price, probate value, gift value, spouse transfer, rebasing or earlier reorganisation is established.
Incidental costs
Legal fees, agents' fees, valuation costs and transaction taxes are tested against the statutory rules.
Enhancement expenditure
Capital improvements are separated from repairs, maintenance and costs already deducted from income.
Losses and reliefs
Current and brought-forward losses, Private Residence Relief and asset-specific reliefs are reviewed.
Annual exemption and rate
The remaining gain is matched with taxable income to apply the correct rate and payment calculation.
Current 2026/27 position
Capital Gains Tax Rates, Allowances and Reporting Rules
For disposals from 6 April 2026, the main individual rates are 18% and 24%. The Annual Exempt Amount is £3,000 for an individual, trustees and personal representatives generally pay 24%, and qualifying gains within Business Asset Disposal Relief are taxed at 18%.
18% and 24% main rates
The rate depends on taxable income and the part of the gain falling within any unused basic-rate band.
£3,000 for an individual
The allowance applies to net gains for the tax year after allowable losses and reliefs.
24% general rate
Trustees and personal representatives have separate reporting, allowance and administration rules.
18% where BADR qualifies
The ownership, trading, employment and shareholding conditions must be satisfied before relief is claimed.
Property-specific reliefs and risks
Capital Gains Tax on a Home, Rental Property or Jointly Owned Asset
Property calculations frequently depend on occupation, beneficial ownership and the character of the expenditure. Those facts should be established from records rather than reconstructed after the reporting deadline has passed.
Private Residence Relief Is Time and Fact Based
The exempt gain normally follows qualifying occupation and specified deemed-occupation periods. A nomination, actual quality of occupation, another residence and exclusive business use can be relevant.
Letting Relief Is Now Narrow
Letting Relief generally requires the owner to have shared occupation with the tenant. Simply renting out a former home does not automatically produce the historic form of relief.
Improvements Must Be Distinguished from Repairs
An extension or enduring improvement may qualify, but decoration, routine maintenance and costs already deducted from rental profit do not become allowable merely because invoices are available.
One Property Can Produce Different Tax Results
Co-owners can have different base costs, occupation histories, income levels, losses and reporting obligations. Separate calculations and separate approvals are therefore required.
International and residence issues
Foreign Gains, New UK Residents and Temporary Non-Residence
Exeter's university, healthcare and professional workforce includes people arriving in, leaving or returning to the UK. Residence can change which gains are taxable and whether a UK relief or later charge applies.
Foreign property and investments
A UK resident is generally taxable on worldwide gains unless a specific relief applies. Foreign tax, treaty relief, currency conversion and the local acquisition history must be documented.
Four-year FIG regime
A qualifying new resident may claim relief on eligible foreign gains arising during the first four UK residence years after at least ten consecutive tax years of non-UK residence.
Temporary non-residence
Certain gains realised while abroad can become taxable in the year of return where the period of non-residence is temporary and the statutory conditions are met.
Non-resident UK land
Disposals of UK property or land remain within the non-resident reporting regime. Direct and some indirect property-rich disposals require separate consideration.
Agreed Exeter guide fees
Capital Gains Tax Calculation and Reporting Fees
These are the previously agreed fees. They apply to a defined disposal with complete purchase, ownership and sale records. Separate technical advice is quoted where residence, trusts, business reliefs, disputed ownership or substantial reconstruction is required.
Sole-owner property CGT calculation and return
A defined UK property disposal with complete acquisition, disposal and allowable-cost records.
Joint-owner property CGT calculation and return
A separate calculation and reporting process for each co-owner of the same property.
Self Assessment tax return including Capital Gains Tax
A defined disposal calculation and the relevant capital-gains pages on the annual return.
Shares, cryptoassets or several disposals
The fee depends on transaction volume, pool reconstruction, currencies, records and earlier losses.
Private Residence Relief, business disposal or international advice
Technical advice is scoped after the ownership, chronology, residence and relief conditions are reviewed.
Records required after engagement
Information Needed for a Reliable Capital Gains Tax Calculation
The initial enquiry does not require documents. Once the scope is agreed, the checklist is tailored to the asset and reporting route.
Acquisition and ownership
- Purchase contract or probate value
- Dates and ownership proportions
- Gift, spouse transfer or trust records
- Earlier valuations or reorganisations
Disposal documents
- Sale contract and completion statement
- Legal and agents' fees
- Deferred or contingent consideration
- Valuation where market value applies
Property expenditure
- Invoices for capital improvements
- Planning and professional fees
- Evidence the improvement still exists
- Confirmation costs were not already deducted
Occupation and reliefs
- Dates used as the main home
- Periods of absence or letting
- Other homes and nominations
- Business use or shared occupancy
Shares and cryptoassets
- Complete acquisition and disposal history
- Corporate actions and share reorganisations
- Exchange transaction files and fees
- Earlier pool and loss calculations
Income and tax position
- Estimated taxable income for the year
- Current and brought-forward losses
- Foreign tax paid on the disposal
- Self Assessment and residence status
Calculation and submission process
From Disposal Review to HMRC Reporting
The process establishes the reporting deadline first, then completes the ownership, cost, relief and tax analysis before anything is submitted.
Reporting route identified
We confirm the asset, owners, disposal date, residence and whether a 60-day report is required.
Base cost and ownership established
The acquisition, transfers, occupation, expenditure, losses and relevant relief facts are reconciled.
Gain and tax prepared
The computation applies market-value rules, allowable costs, reliefs, losses, exemption and tax rates.
You review before submission
The calculation and tax are explained before the property report or Self Assessment entries are filed.
Exeter and surrounding Devon
Capital Gains Tax Work Reflecting the Regional Asset Base
The wider Exeter market contains different forms of property, investment and business ownership. The service is structured around those transactions rather than generic location wording.
Professional property, shares and founder interests
Former homes, investment property, employee shares, technology-company interests, investments and internationally connected gains.
Coastal property, second homes and family transfers
Rental property, former residences, inherited assets, retirement-related disposals, gifts and estate planning.
Family businesses, land and trading assets
Business sales, partnership assets, rural land, property transfers, succession and incorporation-related gains.
Property, tourism and owner-managed companies
Holiday-related property, hospitality businesses, landlords, company shares, retirement and family ownership changes.
Common technical questions
Capital Gains Tax FAQs
What are the Capital Gains Tax rates for individuals in 2026/27?
For disposals from 6 April 2026, individuals generally pay Capital Gains Tax at 18% to the extent the taxable gain falls within the unused basic-rate band and 24% on the balance. The calculation uses the individual's taxable income and gains for the whole tax year, so a UK property payment made within 60 days may need to be estimated before the final annual position is known.
What is the Capital Gains Tax annual exempt amount?
The Annual Exempt Amount is £3,000 for an individual and £1,500 for most trusts. It applies to the individual's net chargeable gains for the tax year after allowable losses and reliefs. It is not a separate exemption for every asset or every property.
When must a UK residential property disposal be reported?
Where Capital Gains Tax is due on a UK residential property disposal, a UK resident must normally report and pay within 60 days of completion. If the individual is within Self Assessment, the disposal may also need to be included on the annual tax return.
Does a non-UK resident have to report a UK property sale if no tax is due?
Yes. A non-UK resident must report disposals of UK property or land by the applicable deadline even where there is no Capital Gains Tax to pay. The gain may require rebasing or time-apportionment analysis, and the reporting obligation is separate from the final tax calculation.
Is the sale of a former main home always exempt from Capital Gains Tax?
No. Private Residence Relief can exempt the gain attributable to qualifying occupation and normally the final nine months of ownership, but periods of letting, absence, exclusive business use, delayed occupation, land outside the permitted area or ownership before occupation can leave part of the gain taxable.
Can repair and renovation costs reduce a property gain?
Only qualifying capital enhancement expenditure is normally deductible. The cost must be reflected in the asset at disposal and must not already have been deducted against rental or business income. Routine repairs, decoration and maintenance are not automatically allowable capital costs.
How is Capital Gains Tax calculated on jointly owned property?
Each beneficial owner calculates and reports their own share of the gain or loss. The ownership share, acquisition history, occupation, allowable costs, losses and personal reliefs must be considered separately. One owner's exemption or losses cannot simply be used by the other owner.
Does giving an asset to a child avoid Capital Gains Tax?
No. A gift to a child or another connected person is generally treated as a disposal at market value, even where no money is paid. Gift Hold-Over Relief may defer the gain for certain business assets or qualifying shares, but it is not available for every asset.
Are transfers between spouses or civil partners free of Capital Gains Tax?
Transfers between spouses or civil partners who are living together are normally made on a no-gain, no-loss basis. Special extended rules can apply after separation, but the transferee takes over the historic base cost, so the gain is generally deferred rather than eliminated.
How are share and cryptoasset disposals matched with acquisition costs?
Shares of the same class and cryptoassets of the same type are generally pooled, subject to priority matching for acquisitions on the same day and acquisitions within the following 30 days. A transaction listing alone is not enough; quantities, sterling values, fees, reorganisations and previous pool balances must be reconciled.
What rate applies where Business Asset Disposal Relief is available?
For qualifying disposals from 6 April 2026, gains eligible for Business Asset Disposal Relief are taxed at 18%, subject to the statutory conditions and lifetime limit. The two-year ownership, employment, officer, shareholding and trading-company conditions should be tested before the relief is claimed.
Do companies pay Capital Gains Tax when they sell assets?
A company does not normally pay personal Capital Gains Tax. Its chargeable gains are included in the company's taxable total profits and charged to Corporation Tax. Different rules can apply to substantial shareholdings, groups, depreciatory transactions, indexation up to December 2017 and property-rich structures.
Discuss the disposal before records are sent
Start with the Asset, Owners and Completion Date
A short summary is enough for the initial review. We will confirm the reporting route, records required and agreed fee before substantive calculation or advice begins.