Capital Gains Tax

Capital Gains Tax (CGT) Calculations

Capital Gains Tax (CGT) is a tax on the profit you make when you sell or dispose of certain assets that have increased in value. It applies only to the gain made, not the full sale amount.

For example, if you purchased an asset for £10,000 and sold it for £12,000, the £2,000 gain may be taxable.

Assets Commonly Subject to CGT

CGT typically applies to:

• Shares and investments held outside ISAs or pensions

• Second homes and buy-to-let properties

• Personal possessions worth more than £6,000 (excluding cars)

• Certain business assets

Some assets held in tax-exempt wrappers like ISAs and pensions are not subject to CGT.

CGT Allowance for 2024/2025

For the 2024/2025 tax year, individuals can make up to £3,000 in gains before CGT is due. Gains above this threshold may be taxed depending on your income tax band.

CGT Rates (from 30 October 2024)

• Basic rate taxpayers: 18%

• Higher and additional rate taxpayers: 24%

These rates apply to most assets, including property and shares.

How Reaveley Cooper Can Help

We help individuals and business owners:

• Calculate their capital gains for the relevant tax year

• Apply the correct CGT rates and allowances

• Complete accurate figures for their Self Assessment tax return

• Liaise with HMRC to ensure all figures are reported correctly and on time

We do not offer tax advice or CGT planning, but we can recommend independent advisers or solicitors if you need further support.

Reporting Capital Gains

Capital gains are usually reported via your Self Assessment tax return, due by 31 January following the end of the tax year. If you do not normally file a return, gains can also be reported using HMRC’s online ‘real-time’ service.

What You’ll Need to Provide

To calculate your CGT liability, we’ll need:

• Purchase and sale dates

• Purchase and sale values

• Any associated costs (e.g. legal fees, stamp duty, improvements)

• Details of any losses or previous gains

Keeping clear records will help ensure an accurate return.

Get Started

If you’ve made a capital gain this year and need help with calculations or reporting to HMRC, contact Reaveley Cooper Accountants. We’ll take care of the numbers and ensure your CGT figures are accurate and submitted on time.