Services/CGT Planning

Capital Gains Tax Planning

UK residential property CGT must be reported and paid within 60 days of completion. Get the calculation wrong and you overpay; miss the deadline and HMRC charges automatic penalties. We match you with a specialist who reconstructs your base cost, claims every applicable relief, and files on time.

The argument

Why a specialist matters here

Most CGT overpayment in Harrow comes from three places: missing improvement costs in the base cost calculation, mis-claimed private residence relief during mixed-use periods, and failure to use annual exemptions strategically across tax years. A specialist who handles 30+ Harrow property disposals a year knows where the money is being left on the table.

What goes wrong

The three problems a general accountant won't catch

01

60 days is not the self-assessment deadline

Residential property CGT must be reported and paid within 60 days of completion — not by the following 31 January. HMRC applies automatic £100 penalties for late returns, with daily penalties after six months. Most people miss this because their conveyancer doesn't mention it.

02

Your base cost is usually higher than you think

Base cost is purchase price plus SDLT, legal fees, survey costs, and every qualifying capital improvement over the holding period. Extensions, loft conversions, new kitchens, new bathrooms — all reduce the taxable gain. Most landlords have no records of these and accept the higher tax.

03

Private residence relief has edges

If you lived in a property then let it, PRR + the final 9 months + lettings relief can significantly reduce the gain — but only if calculated correctly. The rules around mixed-use periods, absences, and qualifying occupation are easy to get wrong, and getting them wrong in HMRC's favour is common.

What you get

What the specialist delivers

01

Full base cost reconstruction

Purchase price, SDLT, legal fees, surveys, and every qualifying improvement traced through Land Registry, planning records, and mortgage documents. Every pound of proven base cost saves you 24p in tax.

02

Relief mapping

Private residence relief, lettings relief, annual exempt amount, spousal transfers, and any rollover or gift relief opportunities — identified and claimed with the correct supporting evidence.

03

60-day return filing

Drafted, reviewed, and submitted within the deadline. Payment calculation checked against your marginal rate in the disposal year. Penalty-free filing, every time.

04

Pre-disposal planning (if you haven't sold)

If you're considering selling in the next 12 months, pre-disposal planning can change the tax materially. Timing, spousal restructuring, and improvement expenditure choices all matter.

Common questions

FAQs on cgt planning

What CGT rate applies to my Harrow property sale?

Residential property CGT is 18% for basic-rate taxpayers and 24% for higher-rate from April 2024. The rate depends on your total taxable income in the year of disposal — so the sale itself can push you from basic to higher rate, and timing matters.

I lived in the property for a few years then let it. What relief do I get?

You get private residence relief for the periods you occupied it as your main home, plus the final 9 months regardless of occupation. Lettings relief may apply on top if you were in occupation alongside the tenant — but this relief was narrowed significantly in 2020 and rarely applies now. A specialist calculates the exact split.

What counts as a capital improvement for base cost purposes?

Improvements that enhance the property or add to it: extensions, loft conversions, new kitchens and bathrooms (replacing like-for-like is a repair, not an improvement — this line is where HMRC often challenges), conservatories, central heating installation where none existed. Replacing a roof with the same spec is a repair; upgrading it is partly an improvement.

I have no records for improvements I made 15 years ago. Can I still claim them?

Often yes, partially. Building Control records, planning applications, mortgage survey revaluations, and insurance revaluations all provide evidence. Bank statements from the period can corroborate payments to builders. A specialist will reconstruct what's provable and advise on what has to be conceded.

Ready to see who we'd match you with for cgt planning?