Reducing Capital Gains Tax on Property Sales: What You Need to Know
If you’re planning to sell a second home perhaps one used by your children during university or a holiday home, you might be facing a significant Capital Gains Tax (CGT) bill.
With property values rising and recent hikes in CGT rates, it’s essential to understand what reliefs are available and how to minimise your tax liability.
💡 What’s Changed with CGT?
As of the 2025/26 tax year, capital gains on residential property are taxed at:
18% for gains that fall within the basic rate band
24% for gains in the higher rate band
If your gain crosses income tax thresholds, you’ll likely pay a blended rate.
Important: CGT must be reported and paid within 60 days of the sale, or you risk penalties.
🔍 What Can You Do to Reduce Your Bill?
There are legitimate tax reliefs and planning strategies that can help you reduce the amount of CGT payable. For example:
Strategic timing of the sale
Spouse exemptions and ownership structures
Making full use of the CGT annual exemption
Claiming Principal Private Residence relief in certain cases
🤝 We Can Help
Navigating capital gains tax doesn’t have to be overwhelming. At Jenner’s Tax and Business Advisers, we specialise in tax planning strategies that help property owners make the most of available reliefs while ensuring compliance and avoiding costly penalties.
If you’re planning to sell a property, don’t wait until after the sale to think about tax. Let’s talk now about how we can help you reduce your tax bill and stay compliant.
📞 Call us on 01432 379988
🌐 Visit: www.jennersacc.co.uk or contact us directly here.
