Capital Gains
Tax Essex

For the 2024/25 tax year, CGT rates on residential property are 18% for basic rate taxpayers and 24% for higher and additional rate taxpayers. For other assets (shares, business assets, etc.), the rates are also 18% and 24% following the changes in the October 2024 Autumn Budget. Business Asset Disposal Relief (formerly Entrepreneurs' Relief) reduces the rate to 10% on qualifying business disposals up to £1 million lifetime. The annual CGT exemption is £3,000 for 2024/25.

Since 27 October 2021, UK residents who sell a residential property in the UK must report the gain and pay any CGT due within 60 days of completion. This is done through HMRC's online Capital Gains Tax on UK property service. Failure to report within 60 days results in automatic penalties and interest charges. We handle 60-day property CGT returns for Essex property sellers, ensuring you never miss the deadline.

In most cases, no — the sale of your main home is exempt from CGT under Private Residence Relief (PRR). However, PRR may be restricted if you have let the property, used part of it for business, or if the garden exceeds half a hectare. If you have lived in the property for only part of the time you owned it, PRR will be apportioned. We calculate the exact PRR available for Essex homeowners and ensure the relief is correctly claimed.

Business Asset Disposal Relief (BADR), formerly known as Entrepreneurs' Relief, reduces the CGT rate to 10% on qualifying gains up to a £1 million lifetime limit. To qualify, you must have owned the business for at least two years, been an employee or officer of the company, and held at least 5% of the ordinary share capital and voting rights. We assess eligibility for Essex business owners and ensure the claim is made correctly on your self-assessment return.

Yes — transfers between spouses and civil partners are made at no gain/no loss for CGT purposes, meaning no CGT is triggered on the transfer itself. This allows couples to use both partners' annual CGT exemptions and potentially benefit from a lower tax rate if one partner is a basic rate taxpayer. We advise Essex couples on the most tax-efficient way to structure asset disposals, including the timing and sequencing of transfers.

Landlords selling residential property may be able to claim Private Residence Relief if they have lived in the property at any point, and Letting Relief in certain circumstances. The annual CGT exemption of £3,000 can also be used. If the property is held jointly with a spouse, both exemptions can be used. We calculate the full relief position for Essex landlords and ensure all available reliefs are claimed before calculating the final CGT liability.

CGT on shares and investments is reported through your annual self-assessment tax return. You must report all disposals, even if no tax is due, if the total proceeds exceed four times the annual exemption (£12,000 for 2024/25). Share disposals are subject to the share matching rules (same day, 30-day bed and breakfast, and pool rules). We handle CGT reporting for Essex investors, including complex portfolios with multiple disposals across the tax year.

Capital losses can be offset against capital gains in the same tax year, reducing your overall CGT liability. If your losses exceed your gains, the excess can be carried forward to future tax years. Losses must be reported to HMRC within four years of the end of the tax year in which they arose. We ensure all capital losses are correctly reported and carried forward for Essex clients, maximising the tax benefit in future years.

Simply call us on 01268 799919, email natalie@rocketaccountants.co.uk or use the contact form on this website. We will arrange a free initial consultation, assess your CGT position and provide a clear transparent quote. We handle capital gains tax reporting for property sellers, investors, business owners and landlords across Essex — from Basildon and Southend-on-Sea to Chelmsford, Colchester and beyond.