Capital Gains Tax Accountants in London

What Is Capital Gains Tax and Who Has to Pay It in London?

Capital Gains Tax is a UK tax charged on the profit made when you sell or dispose of an asset that has increased in value, such as property, shares, or a business. You pay tax only on the gain, not the full sale price.

In London, this most commonly affects landlords selling a buy to let property, homeowners selling a second property, and business owners disposing of shares or a company. It can also apply to gifts of assets, inherited property that is later sold, and cryptoassets. Anyone with total gains above the £3,000 annual exempt amount in a tax year is likely to have a Capital Gains Tax liability, and, in many property cases, a 60 day reporting obligation on top of the usual Self Assessment return.

If you are a landlord or property investor in London, this tax often catches people out because property values have risen significantly over the years many landlords have held their assets, and the tax free allowance has fallen from £12,300 to £3,000 since 2022.

What Are the Capital Gains Tax Rates for 2026/27?

Since 30 October 2024, property, shares, and other chargeable assets have all shared the same rate structure. The rate you pay depends on your total taxable income for the year, not the type of asset.

The taxable gain sits on top of your income for the year. The portion that falls within your remaining basic rate band is taxed at 18%, and anything above that is taxed at 24%. Full detail on current thresholds is published by HMRC on GOV.UK.

How Much Capital Gains Tax Will I Pay on a London Property Sale?

Take a landlord who bought a flat in East London for £280,000 and sells it for £420,000, giving a gain of £140,000. After the £3,000 annual exempt amount, £137,000 is taxable. If the landlord is a higher rate taxpayer, the full amount is taxed at 24%, giving a Capital Gains Tax bill of £32,880, due to HMRC within 60 days of completion.

This example shows why early planning matters. Structuring a sale around the tax year end, using both spouses’ allowances, or claiming an available relief can meaningfully change the final bill.

What Reliefs Can Reduce My Capital Gains Tax Bill?

Several reliefs can reduce or remove a Capital Gains Tax liability, and GM Professional Accountants reviews all of them before you sell, not after.

Most reliefs must be claimed correctly on your Self Assessment return or your 60 day property return, with supporting evidence kept in case HMRC asks for it. Getting the claim wrong, or missing a relief altogether, is one of the most common and most costly mistakes we see when reviewing a client’s history before taking them on.

Does Capital Gains Tax Apply to Gifted or Inherited Property?

Gifting property or shares to family members other than a spouse can trigger Capital Gains Tax, calculated on the market value at the time of the gift, not the amount actually received. If you inherit a property and later sell it, Capital Gains Tax is worked out on the increase in value between the date of death and the date of sale, using probate value as the starting point. Many London families are caught out here, particularly with property in areas like Wimbledon and East London where values have risen sharply since probate was granted.

GM Professional Accountants reviews probate valuations, agrees an accurate base cost, and calculates the precise gain before you sell, so there are no surprises when the 60 day reporting window opens.

When Do I Need to Report and Pay Capital Gains Tax?

If you sell a UK residential property and tax is due, you must report and pay within 60 days of completion using HMRC’s online property reporting service. This is separate from your Self Assessment return. Gains on shares or other assets are reported through your Self Assessment return by 31 January following the end of the tax year. Missing the 60 day property deadline triggers an immediate £100 penalty, with further penalties and interest the longer it is left.

Why Choose GM Professional Accountants for Capital Gains Tax in London and Essex?

GM Professional Accountants serves clients across London and Essex, with teams working from Ilford, Wimbledon, and Old Street. Whether you are a landlord in East London selling a rental property, a business owner in Essex disposing of company shares, or an individual planning the sale of inherited property, we calculate your exact liability, identify every relief you qualify for, and file your 60 day property return or Self Assessment return correctly and on time.

We also work closely with our property accountants in London team, so landlords get joined up advice covering both their annual rental accounts and any Capital Gains Tax due on a future sale.

Our clients typically come to us before a sale completes rather than after, since the reliefs available and the timing of a disposal make the biggest difference to the final tax bill. As AAT regulated accountants with over 15 years of experience across London and Essex, we take a straightforward, plain English approach, explaining exactly what you owe and why, before you commit to a sale.

Frequently Asked Questions