Capital Gains Tax on UK property and shares

Work out the gain before you spend the proceeds

Capital Gains Tax applies when you dispose of an asset — typically selling, gifting, or receiving insurance proceeds — for more than the allowable cost. Allowable cost is usually what you paid plus certain improvement and selling costs, not a round-number guess.

Residential property that is not fully covered by Private Residence Relief can need a report and payment to HMRC on a short deadline after completion, as well as an entry on Self Assessment. Confirm the current reporting window on GOV.UK; it has changed before.

Reliefs are specific, not vibes

Private Residence Relief, lettings relief (now limited), spouse transfers, Business Asset Disposal Relief, and Incorporation Relief all have conditions. Using the wrong nickname for a relief is how claims fail. Business Asset Rollover Relief is for replacing qualifying business assets — not for a buy-to-let swap you have already completed.

Shares and crypto follow CGT rules with matching and pooling. ‘I moved it between my own wallets’ is usually not a disposal; ‘I sold it for sterling on an exchange’ usually is.

• Keep completion statements and broker contract notes.
• Record dates — same-day and 30-day share matching can change the gain.
• Do not net a property loss against your salary on the employment page.

If the disposal was years ago

Unreported property or crypto gains are a staple of voluntary disclosures. Interest will have run. A clean computation is still better than waiting for a nudge letter.

CGT is one of Solaratax’s specialist areas. See Capital Gains Tax services or contact the team with the completion statement before you file.

Questions we are asked

Do I pay CGT if I sell my home?

Often no, if it has been your only or main residence throughout and the relief conditions are met. Partial letting, a long delay in selling, or more than one home can create a chargeable gain.

Is crypto taxed as income or capital?

Frequent trading can be income in rare cases. Most individuals pay CGT on disposals. Airdrops and mining can be income. Keep the exchange CSVs.

Can a company pay CGT?

Companies generally pay Corporation Tax on chargeable gains, not the individual CGT rates. Different indexation and relief rules apply.