LetsFile guides
Free UK tax guides, written in plain English.
Across every LetsFile product. 100% accuracy checked by a fully qualified Chartered Accountant/Chartered Tax Advisor. Updated when the rules change. No jargon.
Property CGT
View all 38 →CGT when your property is compulsorily purchased
LetsFile Team3 min read
Compulsory purchase orders trigger CGT. The compensation payment is treated as disposal proceeds. You may be able to defer the tax if you use the money to buy a replacement property.
Read article →The 60-day UK CGT property deadline, explained simply
LetsFile Team6 min read
When the clock starts, who has to file, what happens if you miss it, and what HMRC needs. A plain-English summary of the 60-day CGT-on-property rule, reviewed by a Chartered Accountant/Chartered Tax Advisor.
Read article →How to appeal a CGT late filing penalty
LetsFile Team4 min read
An automatic £100 penalty follows a missed 60-day CGT return. It can be overturned if you had a reasonable excuse. Here is what counts as one and how to make the appeal.
Read article →CGT when you sell a property converted to an HMO
LetsFile Team3 min read
Selling a converted HMO involves CGT on the full gain since purchase. Conversion costs are often allowable. PRR only applies to periods you occupied it as your own home.
Read article →Can you amend a 60-day CGT return after submitting it?
LetsFile Team4 min read
Submitted a 60-day return and then found a receipt you missed or a figure that was wrong? You can amend it. Here is how the process works and how long you have.
Read article →Private Residence Relief (PRR): the full UK guide
LetsFile Team6 min read
Private Residence Relief is the single most-overlooked relief on UK property disposals. We walk through what it covers, how the calculation actually works, deemed occupation, and how to claim it correctly.
Read article →Business Asset Disposal Relief and residential property: does it apply?
LetsFile Team3 min read
Business Asset Disposal Relief cuts CGT to 14% (from April 2025). Buy-to-let properties do not qualify. Here is why, and the narrow situations where a property disposal might attract the lower rate.
Read article →CGT on garden land sold separately: what you need to know
LetsFile Team3 min read
Selling a plot of garden land triggers a CGT part-disposal calculation. PRR is only available if the land was within the permitted area at the time of sale, and the 60-day return applies if there is a chargeable gain.
Read article →CGT on Right to Buy property: what happens when you sell
LetsFile Team3 min read
Right to Buy gives tenants a discount on market value. When you sell a Right to Buy property, CGT is calculated on the full gain from the discounted purchase price — the discount is a genuine base cost advantage, not an artificial reduction.
Read article →Negligible value claims for property: what they are and when they apply
LetsFile Team3 min read
If a property asset has become effectively worthless — through flood damage, structural failure, or legal defect — a negligible value claim allows you to crystallise the loss without an actual sale. The rules on when this applies to property are narrow.
Read article →Deferred consideration on a property sale: how CGT applies
LetsFile Team3 min read
Selling property for a price that depends on future events — overage clauses, overage on planning permission, or staged payments — creates deferred consideration. CGT may be due before you receive the full amount.
Read article →CGT on off-plan property: when is the disposal date?
LetsFile Team3 min read
Selling an off-plan property before completion, or shortly after, creates questions about when the disposal occurs and whether the 60-day CGT return applies. The rules depend on whether you assigned the contract or completed.
Read article →CGT property valuations: what to do when HMRC disputes your figures
LetsFile Team3 min read
If you sell to a connected person, gift a property, or need a historic valuation, HMRC may challenge the figure you use in your CGT return. This guide explains how HMRC disputes arise, how valuations are tested, and what the Shares and Assets Valuation service does.
Read article →Can I transfer a property to my spouse to reduce CGT?
LetsFile Team4 min read
Passing a property to your spouse before selling can reduce the total CGT bill by using two sets of allowances and two tax rates. But the rules are strict — and the timing matters more than people realise.
Read article →Can I offset share losses against a property capital gain?
LetsFile Team3 min read
Capital losses from shares and other investments can be set against your property gain in the same tax year. This includes losses on unit trusts, ETFs, and crypto. Here is how the offset works and what you need to report.
Read article →Can pension contributions reduce the CGT on a property sale?
LetsFile Team4 min read
A pension contribution in the same tax year as your property sale extends your basic rate band, potentially reducing CGT from 24% to 18% on part of the gain. This is a legitimate and frequently missed tax saving.
Read article →CGT on a property sale during probate: who pays and when
LetsFile Team3 min read
Selling a property as an executor is not the same as selling as an individual. The CGT annual exempt amount, the rates, and the reporting deadlines all work differently during estate administration.
Read article →What home improvements can you deduct from a property capital gain?
LetsFile Team3 min read
Not all money spent on a property can be deducted from the CGT gain. HMRC distinguishes between improvements (deductible) and repairs or maintenance (not deductible). Here is where the line sits.
Read article →Do I still need to file a Self Assessment after the 60-day CGT return?
LetsFile Team4 min read
Many people assume the 60-day CGT return is their only filing obligation after a property sale. It is not. If you are in Self Assessment, you must also report the gain in your annual return — and reconcile any over or underpayment.
Read article →CGT when you sell a property below market value
LetsFile Team3 min read
If you sell a property to a family member for less than it is worth, you may still owe CGT on the full market value — not the reduced price. The connected persons rules and the market value substitution rule both apply.
Read article →CGT and lease extensions: what happens when a leaseholder sells or extends
LetsFile Team3 min read
Selling a leasehold property with a short remaining term, or paying for a lease extension, both have CGT implications. The premium for the lease extension is a capital improvement that increases your base cost. Selling with a short lease affects both the proceeds and the gain.
Read article →CGT on agricultural property and farmhouses: what owners need to know
LetsFile Team3 min read
Farmers and agricultural landowners disposing of farmland or a farmhouse face different CGT considerations from residential property owners. Rollover relief, principal private residence, and agricultural valuations all come into play. Here is the overview.
Read article →CGT vs income tax on property development: when is a profit a gain and when is it income?
LetsFile Team3 min read
Buying a property, improving it, and selling at a profit can be either a capital gain taxed at 18%/24% or trading income taxed at up to 45%. The distinction is not always clear. Here is how HMRC approaches the question.
Read article →CGT when a property sale falls through: what happens to the disposal?
LetsFile Team3 min read
Exchange creates the disposal for CGT, not completion. If a sale falls through after exchange, the rescission or reversal of contracts has CGT consequences. Here is how HMRC treats an aborted sale and what you need to do.
Read article →Multiple property completions on the same day: how CGT and the 60-day rule apply
LetsFile Team3 min read
Selling several properties on the same completion date is common for portfolio landlords and estates. You report the disposals through one CGT-on-UK-property return — adding each property — rather than filing separately for each. Here's how the 60-day rule and the annual exempt amount apply.
Read article →CGT on a new-build property: what is different from buying second-hand
LetsFile Team3 min read
New-build properties have a higher base cost than equivalent second-hand properties (including premium for the new-build status), shorter ownership histories, and specific issues around reservation fees and part-exchange. Here is how CGT applies.
Read article →CGT when a property is damaged or destroyed: insurance payouts and the tax position
LetsFile Team3 min read
An insurance payout after a property is destroyed is treated as proceeds of a part-disposal or full disposal for CGT purposes. If you reinstate the property, you may elect to defer the gain. If you do not, CGT may be due.
Read article →CGT when a property is repossessed by the mortgage lender
LetsFile Team3 min read
When a mortgage lender repossesses and sells your property, you are treated as disposing of it when the lender sells — your proceeds are the sale price the lender achieves (the lender acts as your nominee, TCGA 1992 s26). Even if you receive no cash, there may be a chargeable gain if the sale price exceeds your base cost. Losses can also be claimed.
Read article →CGT and shared ownership: staircasing, final sale, and the 60-day return
LetsFile Team3 min read
Shared ownership buyers own a percentage of the property and pay rent on the remainder. Staircasing increases that percentage. Selling the share you own triggers CGT rules that differ from owning outright. Here is how the tax works at each stage.
Read article →When exactly does the 60-day CGT clock start on a property sale?
LetsFile Team4 min read
The 60-day clock for CGT on property starts on the day of completion. Not exchange. Not when funds clear. Not when your solicitor sends the report. Day one is the completion date itself.
Read article →What happens to CGT if a property buyer defaults after exchange?
LetsFile Team3 min read
Exchange of contracts creates the CGT disposal date, even if completion never happens. If a buyer defaults and you rescind the contract, the position depends on whether the original exchange is treated as having occurred.
Read article →Does remortgaging trigger CGT? The common misconception explained
LetsFile Team3 min read
A remortgage is borrowing, not a sale. Withdrawing equity from a property through a remortgage does not trigger CGT. Tax only arises on a disposal — when ownership changes. Here is why, and what situations do create a CGT event.
Read article →CGT record-keeping: what HMRC requires you to keep and for how long
LetsFile Team3 min read
HMRC can investigate a CGT return for up to 20 years if they suspect fraud or deliberate inaccuracy. Even for non-deliberate errors, the window is four years. Here is exactly what records you need to keep after a property disposal, and for how long.
Read article →CGT: does the tax year depend on exchange or completion?
LetsFile Team3 min read
Exchange date determines which tax year a property gain falls into. Completion date starts the 60-day reporting clock. Getting this distinction wrong can mean filing in the wrong tax year — or missing a planning opportunity.
Read article →What happens if I sell a property at a loss for CGT purposes?
LetsFile Team4 min read
Selling a property at a loss creates an allowable capital loss you can use against other gains — but only if you report it. Many people miss the reporting requirement and lose the benefit.
Read article →CGT when you part-exchange your property for a new build
LetsFile Team3 min read
Handing your property to a developer as part-exchange for a new build is a CGT disposal. The offer price is your proceeds. If the part-exchanged property is not your main home, tax may be due within 60 days.
Read article →How to make the most of your CGT annual exempt amount on property
LetsFile Team4 min read
At £3,000 for 2025/26, the CGT annual exempt amount is small — but it cannot be carried forward. If you are selling property this year, there are legitimate ways to make sure you are using it fully.
Read article →Allowable costs vs repairs: what HMRC accepts on a property CGT return
LetsFile Team6 min read
Capital improvements reduce your CGT gain. Repairs and routine maintenance don't. Knowing which side of the line a cost sits on can swing a tax bill by thousands.
Read article →
Latest articles
- CGT when your property is compulsorily purchased3 min read
- The 60-day UK CGT property deadline, explained simply6 min read
- How to appeal a CGT late filing penalty4 min read
- CGT when you sell a property converted to an HMO3 min read
- Can you amend a 60-day CGT return after submitting it?4 min read
- Private Residence Relief (PRR): the full UK guide6 min read
- Business Asset Disposal Relief and residential property: does it apply?3 min read
- CGT on garden land sold separately: what you need to know3 min read
- CGT on Right to Buy property: what happens when you sell3 min read
- Negligible value claims for property: what they are and when they apply3 min read