Cost guide
How much does a Capital gains on property cost?
Selling a property can feel complex, especially with taxes like Capital Gains Tax (CGT). But don't worry, navigating CGT doesn't have to be a headache. This guide will help you understand the potential costs involved in getting expert help. Professional assistance to calculate and report your CGT usually costs between £250 and £1,000. This covers the careful calculation of your gain, identifying any reliefs, and ensuring your report to HMRC is accurate and on time.
Typical price
£250 to £1,000
What changes the price
Property's selling price
A higher value property often means more detailed calculations are needed.
Number of owners
More owners can add complexity, as each individual's tax situation needs consideration.
Property history
If you've made significant improvements, gathering the right records takes time.
Use as a home
If it was your main home for some periods, reliefs might apply, requiring careful assessment.
Overseas residency
If you are not a UK resident, different rules apply which increase the work involved.
Record keeping
Well-organised records of purchase and sale costs will generally reduce your accountant's time.
Prices by region
| Region | Low | Typical | High |
|---|---|---|---|
| London | £350 | £800 | £1,100 |
| South East | £300 | £700 | £1,000 |
| South West | £280 | £650 | £950 |
| East of England | £270 | £620 | £900 |
| Midlands | £250 | £580 | £850 |
| North West | £240 | £550 | £800 |
| North East and Yorkshire | £230 | £500 | £750 |
| Scotland and Wales | £220 | £480 | £730 |
Questions people ask
What exactly is Capital Gains Tax (CGT) on property?
CGT is a tax on the profit you make when you sell an asset that has increased in value. For property, it's the gain you make between buying and selling, minus allowable costs. It's not taxed if it was always your main home.
Do I always pay CGT when selling a property?
No, you don't always pay CGT. Your main home is usually exempt, thanks to Private Residence Relief. There's also an annual allowance you can use before tax is due.
How do I report CGT on property?
You typically need to report the sale and pay any CGT due within 60 days of completion. An accountant can help you ensure all figures are correct and submitted on time.
What records do I need to keep?
Keep all documents related to buying and selling, such as solicitor's letters and estate agent invoices. Also keep records of any improvement works, like receipts for extensions or major renovations, as these can reduce your taxable gain.
Can I reduce my CGT bill?
Yes, there are several ways. You can use your annual allowance, deduct allowable costs like stamp duty and legal fees, and apply reliefs such as Private Residence Relief. An expert can guide you through all available options.
Why should I use a professional for CGT?
Professionals ensure accuracy, identify all applicable reliefs, and handle the complex reporting to HMRC. This saves you time, reduces stress, and helps you avoid costly errors or penalties.