CAPITAL GAINS TAX RATES

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Capital Gains Tax can be complicated and mistakes can cost thousands.

When you sell a residential property in the UK that is not your main home, you may be subject to Capital Gains Tax (CGT) on the profit you make. This profit is the difference between what you paid for the property and what you sell it for, minus any allowable deductions and reliefs and allowances. 

Current Rates of Capital Gains Tax

CGT rates for residential property depend on your overall taxable income. For the 2023/24 tax year, there are two rates for property gains:

18% for individuals whose total annual taxable income and gains are within the basic Income Tax band.

28% for individuals with income and gains that exceed the basic Income Tax threshold.

The Spring Budget of 2024 drops the higher rate to 24% with effect from 6th April 2024. Please bear in mind that the tax point for Capital Gains Tax is determined by exchange, not completion.

Annual exempt amounts

The current annual exempt amount is £6,000 per person. Where two or more individuals own a property each will be entitled to their own annual exempt amount.

Deduct you annual exempt amount from your gain before calculating the tax liability using the upper and lower rates as appropriate.

Please note that the annual exempt amount drops to £3,000 with effect from 5th April 2024.

How upper and lower rates work

Your total taxable income includes earnings from employment, self-employment, certain benefits, pensions, and rental income. To determine which CGT rate applies, you must first calculate your total taxable income for the year, then add your taxable gain from the property sale.

Calculate Your Total Taxable Income: This includes all sources of income for the tax year, after deductions and allowances.

Determine Your Available Basic Rate Band: For the 2023/24 tax year, the basic Income Tax rate applies up to £50,270 (this can vary depending on your circumstances, such as if you live in Scotland or receive the Marriage Allowance).

Add Your Property Gain after deducting you annual exempt amount, reliefs and allowable deductions: If the combined total of your income and gain is within the basic rate band, the lower CGT rate (18%) applies to your gain. If your income and gain exceed this threshold, the higher rate (28%) applies to the portion of the gain that exceeds the threshold.

Is UK Capital Gains Tax too high?

The UK has a comparatively reasonable residential capital gains rates when compared to other European countries.

Given that the Chancellor has a continuing need to raise additional taxes it seems that CGT could well be within their sights.

CountryCGT Rate (%)
UK18 or 28
Denmark42
France34.5
Finland34
Ireland33

We are accurate and reliable and we get the job done!

We provide free advice on the basis that we are specialists in Residential Capital Gains Tax and people often choose to use our reasonably priced services for ease and peace of mind.

We are HMRC Authorised Agents and can manage the whole process of submitting your Returns for you.

Celia Prause
2. April, 2024
Great experience - I knew who I was talking to and James and Jayne were at all times friendly, competent and supportive. Even the international element didn’t deter them. An excellent service.
Katia Leonova
28. March, 2024
It is worth a lot when you can get a professional advice over the phone. Tax Bees answered my question just in minutes, in a extremely friendly manner, and with no attempts to upsell. Highly recommend them as CGT professionals!
Barry Loughran
21. March, 2024
I can only endorse all the previously posted positive reviews about this business. Friendly people and yet extremely knowledgeable and professional regarding the subject matter. A pleasure to deal with and I can strongly recommend them for all your taxation matters.
Andy Bacon
5. March, 2024
Having sold a UK residential property I had owned for 18 years I was facing a potentially significant CGT liability. Although the HMRC calculator appeared pretty straightforward I decided to approach an expert and fortunately found James just in time. I found his willingness to provide no obligation up-front advice over the phone very welcome and decided to appoint Tax Bees for peace of mind with the added bonus that his very reasonable fee might be saved when he got into the detail of my case. I certainly pays to spend some time putting together all the facts; as a result it proved very fruitful to invest in James when he significantly reduced my expected liability by many thousands compared to the HMRC online calculator. Lesson learnt - its never as simple as it first appears and not all the rules are entirely transparent!
Adam Jenkins
21. February, 2024
Tax Bees were fantastic at quickly and calmly helping us with a family tax situation. James was a reassuring presence during a stressful time. I wouldn’t hesitate in recommending him.
CLIVE WALLIS
14. February, 2024
I asked Tax bees at short notice to help out with my CGT submission, i found the team to be very efficient and very approachable . The fee was fixed .. so no nasty surprises at the end, and i believe the tax saving and peace of mind knowing that a professional had been involved is very reassuring. Thanks to James and Jayne.
Sara Barron
2. February, 2024
Thanks so much for everything and for completing our return on time. You've been so easy to work with and have done an excellent job. I found Tax Bees online and was nervous about using a service without a personal recommendation. However, I would highly recommend Tax Bees to anyone looking for help with their Capital Gains Tax, particularly James Dean, who has been exceptionally helpful and efficient from the first email enquiry and has achieved a great outcome.
tracey hale
28. January, 2024
Fantastic service very efficient attention to detail Friendly and very knowledgeable
Kate Jones
24. January, 2024
I popped into Tax Bees on the off chance that I might be able to get some help with my Self Assessment Tax Return. I drive past the building everyday and often wondered whether they would be able to help advise me. James and Jayne were so friendly and welcoming and after a nice chat and a coffee they reassured me that they could help straight away - even during the month of January which is a very busy month for them. I would certainly recommend Tax Bee's if you have any Tax needs or concerns for your business or if like me you just need help and guidance on that dreaded self assessment. James also looked into my last four years of pension tax relief and managed to get me a rebate. Very happy customer. Thanks again James and Jayne!
Melanie Palmer
22. January, 2024
We recently hired Tax Bees for capital gains tax reporting and we're very happy that we did. James was very helpful, knowledgeable and efficient. Money well spent :)
Call us for free advice

We are always happy to have a chat, answer your questions and to see if we can save you Tax!

Instruct us to act

We will prepare all the documentation that is needed for us the act on your behalf

Sign our Terms of Business

We use electronic signatures for speed and ease. Then send us a picture of your passsport or driving licence

Video Meeting

We will book a Video Meeting so that we can confirm your identity for Money Laundering purposes and capture the details and narrative of  your transaction

Follow up tasks

Answer follow up questions by email and provide supporting documents if requested

Set up you HMRC Capital Gains Tax on Residential Property Online Account

This isn't always easy, we will send instructions and are available on the telephone to help

Authorise us to act on your behalf

We will email you an HMRC link which allows you to authorise us as your Agents

We send you your tax calculation for approval

Check that all of the information that we are to submit is correct

We submit your return electronically

A copy of the our HMRC reciept will be emailed to you.

HMRC Confirmation

You will recieve a seperate email confirmation from HMRC

Pay your Tax

Capital Gains Tax must be paid within 60 days of completion of the the sale. We will explain how

Relax

The process is complete. Should HMRC contact you regarding the transaction we are here to help. 

Why our customers love us

Specialists in Residential Capital Gains Tax for Residents and Non-Residents

Authorised Tax Agents who can calculate and file your returns for you

Our Insurance Policy offers you peace of mind in the event HMRC want to examine your return

We look after the whole process, so that you know your return is correct.

Have Further Questions? We have you covered

Answer: Yes, we are aware of how difficult this can be and will walk you through the process to ensure that you get it right.

Answer:

Provided we have all the information that we need we can generally submit a return within a week or so. Please note that returns must be submitted withing sixty days of your completion date. If a deadline is urgent, we can sometimes submit a return on a next day basis.

Answer:

Absolutely, we work with people all over the world who sell properties in the UK and have HMRC reporting obligations.

Answer:

We offer a comprehensive advice service within our fee and will always make sure we that you maximise reliefs and allowances in order to pay the minimum amount of tax compliant with legislation.

Answer:

Contact us for a chat. There may be interest and penalties to pay but you should still submit your return.

Answer: Use our free CGT calculation service, with real human beings, and get your answer in less than sixty minutes!

Answer: Our fixed price package includes insurance against the costs of an HMRC Investigation.

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Capital Gains Help
Beehive House, 30 Boughton,
Chester CH3 5AG

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