Capital gains advice for UK landlords

If you live in Britain, own property which you currently rent to tenants and are considering selling it, talk to us today so we can make sure your tax bill is as low as possible.

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Simon Thandi, UK Landlord Tax

Hi, I’m Simon.

I’m one of the Directors of UK Landlord Tax and as it happens, a landlord myself. Capital gains tax is one of the little wrinkles that can make owning property a challenge, if you let it. Being aware of CGT is the first step in dealing with it. Having a strategy for making sure you don’t pay more than you need to comes next. Talk to us – together, we’ll get it sorted.

Selling property shouldn’t come with a sting in the tail

We help with capital gains tax by…

Calculating your capital gains tax

Knowing what your capital gains tax liability is before you sell is vital. We can provide you with an estimate of the tax liability and discuss your options. If you have already sold and there is tax to pay, a CGT calculation will need to be carried out and a report made to HMRC within 60 days of completion of the sale.

Looking at the bigger picture

By looking at your property income and capital gains as part of your overall tax situation, we can identify opportunities to keep your tax bill under control.

Applying technical know-how

Different ownership structures and business models can provide various advantages for landlords, especially those with multiple properties who are starting to take letting seriously as a business.

Download our FREE UK Property Tax Guide.

A simple guide to property rental income tax and property capital gains tax for UK Landlords.

Current tax rules

Dealing with HMRC

How our tax system works outside of PAYE

Frequently asked questions

Can I claim Rollover Relief?

Rollover Relief is available on furnished holiday lettings and on certain trading assets. If you reinvest all or some of your proceeds, you may be able to defer the gain by claiming rollover relief.

Rollover relief however is not available to most landlords as BTL property is not included under the relief.

How do I report and pay CGT?

The disposal of UK residential properties by UK residents must be reported and the payment of Capital Gains Tax must be made within 60 days of the completion of the sale where there is Capital Gains Tax to pay.

For detailed guidance on the new rules please read our guide on how to report and pay capital gains tax on uk property.

What tax relief or allowances do I get when I sell my property?

There is an annual capital gains tax allowance which is £12,300 for 2020/21 to 2025/26 for everyone.

You will also get Principle Private Residence relief for any period of time you have lived at the property as your main residence plus the final 9 months.

Can I avoid Capital Gains Tax?

In certain circumstances you may be able to reduce or avoid entirely any capital gains tax. For example:

Mrs Jones owns a property in her own name. It may be an idea to transfer the property into joint names with Mr Jones before a sale assuming that Mr Jones has not already used his CGT exemption in the tax year concerned. You do have to take into account the levels of income of each partner because the rate of capital gains tax for one partner may be higher than that of the other partner. Care does need to be taken as if this is carried out shortly before a sale, then HM Revenue and Customs may attack the transaction as invalid under anti-avoidance rules. You also need to ensure that any income received in the period after transfer of the property is declared on each spouse’s tax return which may increase the income tax paid. There would also be the costs of conveying the property into joint names.

What is Principal Private Residence Relief?

Principal Private Residence relief is a tax relief given on the sale of a property which has at any time during your ownership been occupied as your main residence.

You can find out more by reading the article we recently put together on principal private residence relief.

I am divorcing. Where do I stand with Capital Gains Tax on transfers of property to my ex-partner?

Going through a divorce can be a stressful time so it is vital that you seek professional advice.

If you are in the process of divorce, the period of CGT relief between spouses is extended, but only until the end of the tax year of separation. For more detailed information on this please see the following article all about capital gains and divorce.

Do limited companies pay Capital Gains Tax?

No. Companies pay corporation tax. If you hold property in a company and make a sale, the profit is subject to corporation tax at 19%.

From 1st April 2023, the Government has proposed that the first £50,000 will be taxed at 19%, the next £200,000 will be taxed at 26.5% and the remaining profits will be taxed at 25%. Where companies are under common control the bands are shared equally between each of the associated companies.

Fees for capital gains tax 

If you have sold a property or are looking to sell a property please do not delay, get in touch straight away so we can advise you accordingly. Our fees will vary depending on the complexity of your situation, but don’t worry – we’re always focused on offering great value, accuracy and efficiency.

Get in touch for a quote

If you drop us a line, by email or phone, and tell us a bit about your situation, we’ll talk you through what we can do for you and how much it might cost. You may just need a Capital Gains Tax computation or a more comprehensive service involving any subsequent submissions to HMRC on your behalf. Either way, our expert team will be able to talk you through the process.

Let‘s talk about property tax today

When it comes to fixed-fee tax returns for UK landlords, nobody does it better.

Our capital gains tax services are for you if you…

Might want to sell one day

It’s never too soon to plan. Decisions you make today can help keep your tax bill down when the time comes to sell in years to come.

Have a flat or house you want to sell now

Perhaps being a landlord didn’t work for you and you want to get out of the letting game. Or maybe being a landlord has worked out so well you want to dispose of your starter property and invest in something more substantial. Either way, we’ll give you the advice you need to make sure CGT doesn’t take an unnecessarily big bite of your profits.

Frequently buy and sell property

If you’re a property investor who acquires and sells houses or flats constantly as you build and maintain your portfolio, we can help you manage capital gains tax bills as part of a strategic approach to tax planning. From business structure to tax allowances, UK Landlord Tax will make sure your landlord business achieves maximum tax efficiency.

Overall, very happy

”I’ve been with Thandi Nicholls for a number of years now and have always been very happy with the service I’ve received. They have always been very responsive and helpful to me when I have needed any questions answered. Overall, very happy.”

A WEARS – NOV 2022

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Jennie, UKLandlordTax

Talk to one of the team today

Call us now on 01902 711 370
or 0800 907 8633