Capital Gains Tax
Capital Gains Tax – Allowances, Reliefs and Planning
Disposing of property, shares, land or business assets can create a Capital Gains Tax liability. What you owe depends on the gain, your income and the reliefs available.
With a smaller annual exemption bringing more gains into charge, it is worth considering the tax position before a transaction takes place.
Merranti Accounting can help you assess the potential tax, consider relevant reliefs and losses, and understand your reporting obligations.
Your Annual Exempt Amount
For the 2026/27 tax year, individuals have a £3,000 annual CGT exemption. This applies across your net gains for the year, rather than separately to each sale.
- Unused exemption cannot be saved for a later tax year
- Each eligible individual has their own exemption
- The exemption itself cannot be passed to a spouse or civil partner
Which Tax Rate Applies?
For individuals, the main CGT rates in 2026/27 are 18% and 24%. The calculation takes account of your taxable income and how much basic rate band remains. Qualifying business disposals and other specialist cases have their own rules.
Couples, Gifts and Transfers
Spouses and civil partners living together can usually transfer assets between them without an immediate CGT charge. A later sale normally takes account of the original owner's acquisition cost, so the transfer does not erase the gain.
Giving an asset to another family member can trigger a tax calculation using its market value, even if no money is received. Certain business gifts may qualify for holdover relief, which postpones the gain rather than removes it.
Keep the Records Behind the Gain
Retain evidence of the purchase price, qualifying improvements and relevant buying and selling fees. Valuations and ownership history can also matter, particularly for inherited assets or investments held for many years.
How Merranti Can Help
If a property or investment sale is planned, or you are uncertain about a disposal already made, we can help you understand the position.
- Work out your potential CGT liability
- Consider relevant losses and reliefs
- Review planning before a disposal
- Support accurate, timely reporting
Contact Merranti to discuss your circumstances and the support you need.
Discuss Capital Gains TaxTiming Your Disposal
The disposal date can affect the tax year, the rate payable and the payment deadline. Where practical, spreading transactions across tax years may help make use of more than one year's exemption.
Reliefs and Losses
Allowable losses may reduce taxable gains. We can also check whether Business Asset Disposal Relief, holdover relief or another relief is relevant, and explain the qualifying conditions.
Property and Residence
A main home may qualify for Private Residence Relief, depending on its ownership and use. Non-residents can also have UK tax and reporting obligations when disposing of UK land or buildings.
Reporting and Payment
UK residential property sales with CGT to pay normally require reporting and payment within 60 days of completion. Non-residents must report UK property disposals even where no tax is payable. We can check which reporting route and deadlines apply.
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Learn more about Merranti on Merranti Insights
About our Capital Gains Tax service
Plan your disposal with the tax in mind.
Small choices about a transaction’s timing, ownership and available reliefs can affect the tax due. Contact us before selling or gifting an asset so these points can be considered alongside your plans.
Let’s talk and see how we can help you.
Discuss Capital Gains Tax
