Capital Gains Tax UK | Edward Harris
Capital gains tax uk is a tax on the profit you make when you sell or dispose of an asset that has increased in value.
This guide covers key updates for 2025-26 to help UK business owners manage their tax liabilities effectively and plan for future changes.
Changes to Incorporation Relief Claims Process
Capital Gains Tax incorporation relief claims process will change from 6 April 2026.
This affects businesses incorporating assets, so proactive planning is essential to ensure compliance and avoid penalties.
CGT Rates and Allowances for 2025-26
For the 2025-26 tax year, the Capital Gains Tax allowance is £3,000.
Higher rate taxpayers pay 24% on residential property gains, while basic rate taxpayers pay 18%.
- Business Asset Disposal Relief rate is 14% for sole traders from April 2025.
- The basic rate band is £37,700.
Minimizing CGT for Property Investors
Property investors can minimize Capital Gains Tax by staying within the annual exemption of £3,000 for 2025/26.
This basic strategy helps reduce tax liabilities on property sales without complex schemes.
Avoiding Pitfalls in CGT Calculations
Taxpayers must carefully split gains and allocate losses to calculate correct Capital Gains Tax rates.
Errors in this area can lead to higher tax bills, so accuracy is crucial for compliance.
Planning for CGT Changes in 2026/27
Gains subject to Business Asset Disposal Relief will be taxed at 18% for 2026/27, up from 14%.
Systematic planning is essential to adapt to this increase and optimize tax outcomes for your business.
Ready to Optimize Your Capital Gains Tax Strategy?
Understanding Capital Gains Tax is key to minimizing liabilities for your business.
Book a free consultation with Edward Harris for tailored advice and proactive support from an experienced Chartered Certified Accountant.
