Whether you’re selling a second property, disposing of a business, or realising gains on overseas assets, HeirPlan’s CGT experts structure your disposal to keep more of the proceeds in your hands, within the law.
Key figures:
The annual CGT exempt amount has been cut from £12,300 in 2022/23 to £3,000 today. From 30 October 2024, the main CGT rates on shares and other non-property assets rose to match the property rates of 18% and 24%, and Business Asset Disposal Relief has increased in stages from 10% to 18%.
Unplanned disposals now carry a far greater tax cost than they did even recently. Careful planning before you exchange contracts, sign a sale agreement, or trigger a disposal event can make a material difference to your net proceeds.
The 60-day rule. UK residents must report and pay CGT on the disposal of UK residential property within 60 days of completion, using HMRC’s online CGT on UK Property account. Failure to file on time results in automatic penalties and interest. HeirPlan ensures your reporting obligations are met accurately and on schedule.
| Asset Type | Basic Rate Taxpayer | Higher / Additional Rate |
| Residential property | 18% | 24% |
| Shares and other chargeable assets | 18% | 24% |
| Business Asset Disposal Relief (qualifying gains) | 18% flat | 18% flat |
| Annual exempt amount (individuals) | £3,000 | £3,000 |
| Annual exempt amount (most trusts) | £1,500 | £1,500 |
Rates reflect HMRC guidance for the 2026/27 tax year (from 6 April 2026). BADR is subject to a £1 million lifetime limit. Tax rules can change; always confirm current rates with your adviser before acting.
HeirPlan provides focused Capital Gains Tax planning across residential and commercial property, business disposals, and overseas assets. Every engagement begins with a full review of your position before any transaction proceeds.
Second homes, buy-to-let portfolios, and inherited property all carry distinct CGT exposures. We review your acquisition costs, allowable improvements, periods of occupation, and available reliefs before you proceed.
Commercial property sales, mixed-use developments, and sale-and-leaseback arrangements each require a different planning approach. We identify rollover relief opportunities, gift holdover positions, and the correct base cost treatment from the outset.
Qualifying for Business Asset Disposal Relief at the reduced 18% rate (2026/27) on up to £1 million of lifetime gains requires meeting specific conditions on shareholding, employment, and trading status, generally for at least two years before disposal. With the headline higher rate at 24%, BADR is now worth up to £60,000 per person, so preserving qualifying status before a sale still matters. We assess your eligibility well in advance of any transaction.
UK residents are liable to UK CGT on the disposal of overseas property, even if local taxes have been paid abroad. We advise on double taxation relief, foreign currency gain calculations, and the interaction between UK CGT rules and overseas tax regimes.
With the annual exempt amount at £3,000, proactive use of allowances across spouses and civil partners, and careful timing of disposals across tax years, remains one of the most straightforward ways to reduce your overall CGT position.
Late or incorrect CGT returns attract penalties and HMRC enquiries. HeirPlan handles your UK Property Disposal returns, Self Assessment CGT pages, and any correspondence with HMRC as part of a complete compliance service.
Many property owners are unaware that selling a holiday home in France, Spain, Portugal, or further afield generates a UK CGT liability in addition to any local tax. The rules are more involved than a standard UK property disposal, and getting them wrong is costly.
HMRC treats overseas property disposals in the same way as UK disposals for CGT purposes, subject to one important difference: any foreign tax paid on the same gain can usually be credited against your UK CGT bill under double taxation relief. Without careful calculation, clients either pay too much UK tax or inadvertently trigger penalties by failing to report correctly.
Currency risk in CGT calculations. Your gain must be calculated in sterling using the exchange rates at the date of acquisition and the date of disposal. Exchange rate movements can create a taxable gain even where the local currency price is unchanged. HeirPlan ensures these calculations are done correctly from the outset.
UK resident individuals must report overseas property disposals on their Self Assessment return. The 60-day window applies to UK residential property; overseas disposals are reported through Self Assessment for the relevant tax year.
Original purchase price, legal fees, survey costs, capital improvements, and local taxes paid on disposal all form part of the cost calculation. Records are often incomplete for properties held for many years.
Relief is available for foreign tax paid on the same gain, but the calculation requires matching the UK and overseas gain computations, which are often different in method and result.
If the overseas property was your main residence for a period, UK PRR may reduce or eliminate your CGT liability, subject to conditions. The rules changed materially in 2020 and require careful analysis.
Non-residents selling UK residential or commercial property face their own CGT rules, including the requirement to report to HMRC within 60 days of completion regardless of residence status.
We do not provide one-size-fits-all CGT advice. Every client’s position is different, and the right planning depends on the asset involved, your wider tax position, timing, and your objectives.
We review the asset, how it was acquired, your period of ownership, any improvements made, and your current income tax position. This gives us a clear picture of the CGT exposure before any planning begins.
We identify every available relief, from Private Residence Relief and Business Asset Disposal Relief to rollover relief and holdover, and quantify the benefit of each in your specific circumstances.
Where possible, we advise on the timing of the disposal, the form of consideration, and any pre-sale restructuring that reduces your effective CGT rate or defers the liability without creating additional risk.
We handle all reporting obligations, including 60-day property disposal returns and Self Assessment, and ensure payment deadlines are met. We remain available if HMRC raises any enquiries following submission.
A single conversation with a HeirPlan CGT expert before you exchange or sign can identify reliefs, reduce your liability, and ensure you meet all reporting obligations. We advise on property disposals, business sales, and overseas assets across the UK.
Book your CGT Review today. Contact HeirPlan to arrange your free initial consultation.
A detailed review of the asset, your ownership history, acquisition and improvement costs, and wider tax position ensures the disposal is structured to claim every available relief and minimise your CGT liability.
Using Private Residence Relief, Business Asset Disposal Relief, rollover and holdover relief, and inter-spousal transfers, we reduce your exposure on residential property, commercial property, and business sales.
For overseas disposals, we calculate gains correctly in sterling, claim double taxation relief on foreign tax paid, and ensure your UK reporting is accurate so you never pay tax twice on the same gain.
We handle your 60-day UK property disposal returns and Self Assessment computations, meet every HMRC deadline, and remain available for any enquiries, so you face penalties from neither late filing nor errors.
By timing disposals across tax years and making full use of the £3,000 annual exempt amount for both spouses, we spread gains efficiently and reduce the share of your proceeds lost to Capital Gains Tax.
In most cases, no. Your primary residence qualifies for Private Residence Relief, which eliminates CGT on a gain made on your main home provided certain conditions are met throughout your period of ownership. However, if you have ever let the property, used part of it exclusively for business, or it has not been your only or main residence throughout ownership, a portion of the gain may be chargeable. HeirPlan reviews each case individually to ensure you claim only the relief you are entitled to and do not overpay.
The gain on a residential investment property is calculated as the sale price less the original purchase price and allowable costs, including legal fees, stamp duty on purchase, and capital improvements. The net gain, after deducting your £3,000 annual exempt amount, is taxed at 18% to the extent it falls within your unused basic rate band, and 24% above that. The gain must be reported and the tax paid within 60 days of completion. Planning the timing of the disposal, using inter-spousal transfers, or structuring the transaction correctly can reduce the effective rate.
Business Asset Disposal Relief, formerly Entrepreneurs' Relief, reduces the CGT rate on qualifying gains to 18% for the 2026/27 tax year (it was 14% in 2025/26 and 10% before April 2025), up to a lifetime limit of £1 million. To qualify on a share sale, you must generally have held at least 5% of the ordinary share capital and voting rights, been an officer or employee of the company, and the company must be a qualifying trading company, with these conditions met for at least two years before disposal. The rules are detailed and qualifying status can be lost inadvertently before a sale, so a pre-sale review is strongly recommended.
Yes, as a UK resident you are liable to UK CGT on disposals of overseas property. However, the Spanish tax you have already paid can usually be credited against your UK CGT bill under the UK-Spain double taxation treaty, so you do not pay tax twice on the same gain. The credit is limited to the lower of the UK and overseas tax on the same gain, and the calculation must be done correctly. Errors in foreign currency conversion and gain computation are common and can lead to either an overpayment or an underpayment of UK tax.
Transfers between spouses and civil partners who live together take place at no gain and no loss, meaning no CGT arises on the transfer itself. The receiving spouse or partner takes over the original acquisition cost. This creates a planning opportunity: by transferring an interest in a property before disposal, you can use two annual exempt amounts and potentially bring more of the gain into the lower 18% band. The transfer must be a genuine, unconditional gift. HeirPlan advises on the timing and structure of such transfers to ensure they achieve the intended tax result.
An automatic late filing penalty of £100 applies if you miss the 60-day window for reporting a UK residential property disposal. If the return remains outstanding after six months, a further penalty of £300 or 5% of the tax due, whichever is greater, is charged, with another penalty at twelve months. Interest also accrues on unpaid tax from the day after the deadline. HMRC can open an enquiry into the return, and the window for doing so extends where errors are careless or deliberate. Filing accurately and on time is always the right approach.
