Capital Gains Tax

Capital Gains Tax

Capital Gains Tax (CGT) is a tax on the profit made when you sell or dispose of an asset that has increased in value. You are taxed on the increase, not the total value of the asset. The disposal of an asset includes selling it, gifting it to someone, swapping it or getting compensation for it.

Our tax relief experts have extensive knowledge of Capital Gains Tax and can ensure the best tax relief is used in relation to your personal circumstances. The DH&Co team get to know every aspect of your business or personal circumstances allowing for a holistic approach to your tax planning. By reviewing all taxes in the round, it helps to identify every available tax-saving opportunity.

What do you pay Capital Gains Tax on?

The gain made when you dispose of chargeable assets such as shares, property, and business assets. CGT does not have to be paid on all assets as some assets are tax-free and if all your capital gains in a year fall under the tax-free allowance of £12,300. The Capital Gains tax-free allowance will be reduced to £6,000 from April 2023 with a further reduction to £3,000 from April 2024. Gifts to your husband, wife, civil partner, do not usually require CGT tax to be paid.

Capital Gains Tax rates

The rate of Capital Gains Tax also depends on the band of income tax you pay. Those with a basic rate of income tax will pay 10% on gains while those who are in the higher income tax rate band pay 20% on gains from chargeable assets.

Capital Gains Tax on Sale of Residential Property

While you do not normally pay tax when you sell your main home, the sale of second homes etc are subject to CGT and tax on residential properties differ from other assets. Those in the basic income tax rate band pay 18% on residential properties with those in the higher band paying 28%. If you are eligible to pay Capital Gains Tax on the sale of a property you are required to report and pay it within 60 days of the sale.

Capital Gains Tax for businesses

If you are a self-employed sole trader or in a business partnership you may be subject to Capital Gains Tax on profit made from selling all or part of a business asset. Business assets that you may need to pay CGT on include buildings and land, plant and machinery, fixtures and fittings, registered trademarks, shares and goodwill.

Capital Gains Tax relief

In certain circumstances when selling business assets, you may pay less Capital Gains Tax. When selling qualifying assets, Business Asset Disposal Relief, which was formerly known as Entrepreneurs’ Relief, may be applicable and gains taxed at 10% subject to a current lifetime limit of £1m.  It is worth seeking advice in advance of any proposed sale to establish if any tax planning can be achieved to ensure BADR is available.

There are other reliefs available for CGT such as:

  • Business Asset Rollover Relief – you can delay paying CGT if you sell business assets and use all or part of the gains to buy new assets. Tax is not payable until you sell the new asset, at which point you may need to pay tax on the original assets’ gain.
  • Gift Hold-Over Relief – when you give away certain assets or sell them for less than they are worth you may be eligible to claim Gift Hold-Over Relief. When the person who has been given the asset sells it, only then is Capital Gains Tax will need to be paid if it is due.
  • Enterprise Investment Scheme – offers tax reliefs to individual investors who buy new shares in qualifying companies.
Capital Gains Tax Experts

Capital Gains Tax Experts

DH&Co Directors

All six of the DHCO directors are tax specialists. With the firm’s director-led approach, each of them actively manages tax enquiries from our clients. They have also trained the tax planning team and passed on their extensive knowledge that has been built up over 40 years of service.

“Even when a business has different ownerships, multiple trusts and several revenue streams, DH&Co are incredibly efficient and thorough at tax planning. They leave no stone unturned and are well informed about potential tax relief that is available.”

– David Seed

RM&JF Seed


Capital Gains Tax doesn’t exist in a vacuum – it’s important to consider your entire tax position in the round. Our expert advisors take a holistic approach to tax planning, ensuring that it is as efficient as possible.

Tax Insights

Latest Tax Insights

Contact a Tax Expert

Meeting All Your Accountancy Needs

As well as Capital Gains Tax support, we also offer a range of other Tax Planning Services to meet your Accountancy needs:

Local support

With offices located across Scotland and North England, we can meet where it is most convenient for you

Industry expertise

Our specialists have knowledge spanning many different sectors including agriculture, property, hospitality and medical businesses

Director led

Our highly experienced directors are involved at all levels of the business, making sure you are getting the best service possible

Forward thinking

We take a modern and fresh approach, helping businesses think outside the box and secure exciting opportunities

Making it personal

We work as an extension to your business, getting to know your unique needs

Helping you grow

We are business development specialists, helping your business to go further

Tax Experts Throughout Scotland and North England

DHCO Offices Map
Accountant Locations
Contact Us