If you're planning to sell a business, rental property, shares, or crypto in the near future, it’s time to pay attention to the new Capital Gains Tax (CGT) changes.

What Is Capital Gains Tax?

Capital Gains Tax is charged on the profit made when you sell an asset that’s increased in value.
This includes:

• Residential property
• Cryptocurrency
• Shares
• Business assets

Until recently, residential property was taxed at a higher rate, but that’s now aligned with a single CGT structure.

In this week’s Business Success Conversation, Michael and Lucy break down what’s changing and how those changes could seriously impact your tax bill.

New Capital Gains Tax Rates

• Basic rate taxpayers: 18%
• Higher rate taxpayers: 24%
  These rates apply to most types of assets now, including residential property.

But when it comes to selling your business, the rules are shifting even more dramatically.

💼 Business Asset Disposal Relief (BADR)

Historically, BADR allowed business owners to sell their company and only pay 10% tax on qualifying gains (up to £1 million).

That’s changing:

Example:

Selling your business for £1 million in 2024 = £100,000 tax
Selling in 2026 = £180,000 tax
That’s an £80,000 difference

60-Day Reporting Rule (Property)

If you sell a UK residential property and generate a CGT bill:

• You must file a Capital Gains Tax return within 60 days of the exchange of contracts, not completion
• You must pay the tax within that 60-day window

Many property sellers miss this deadline and face penalties.

What About Crypto?

Cryptocurrency disposals (such as selling, exchanging, or gifting) are also subject to CGT.
HMRC is actively increasing enforcement, and digital transactions are more traceable than ever.

Get the Business You Want

If you’re planning to sell a business or high-value asset, now’s the time to act.
Delays could cost you tens of thousands in additional tax.

Speak to us now and get your timing and strategy right.

Get in touch with Carthy Accountants today.
Helping you get the business you want.

The post Capital Gains Tax Changes: What You Need to Know About Selling Assets, Property, and Your Business appeared first on Carthy Accountants.

If you’re a property investor, you’ve likely asked yourself: Should I move my portfolio into a limited company? It’s a decision that could impact your tax liability, investment strategy, and long-term wealth.

With changes to tax laws and increasing financial and practical pressures on landlords, more and more investors are considering this move, but is it the right decision for you?

At Carthy Accountants, we work with property investors like you every day, helping you navigate the tax landscape and make informed decisions. Here is a break down of what you need to know.

Benefits of Holding Property in a Limited Company

For many investors, a limited company offers greater tax efficiency and financial flexibility. Here’s a few reasons why:

1. Lower Corporation Tax Rates 
Instead of paying personal Income Tax rates, your rental profits are taxed at the lower Corporation Tax rate.

2. Retaining Profits to Reinvest 
Instead of withdrawing profits and paying dividend tax, you can reinvest within the company to grow your portfolio faster.

3. Mortgage Interest Relief 
Unlike individual landlords, companies can deduct mortgage interest as an expense, reducing taxable profits.

4. Asset Protection 
A limited company helps separate personal and business liabilities, protecting your personal assets in case of legal or financial challenges.

5. Easier Succession Planning 
Transferring shares in a company is often more tax-efficient than passing down properties individually.

Downsides to Consider

Not all property investors benefit from incorporation. Some key challenges include:

1. Stamp Duty Land Tax (SDLT) & Capital Gains Tax (CGT) 
Transferring properties into a company may trigger large tax bills, making it costly.

2. Higher Admin & Compliance Costs 
Running a company means more paperwork, stricter tax filing requirements, and potential accountant fees.

3. Limited Mortgage Options 
Many lenders prefer individual landlords, so financing options for company-owned properties may be more expensive or harder to secure.

4. Dividend Tax on Withdrawals 
While Corporation Tax is lower, withdrawing profits as dividends can trigger additional personal tax liabilities.

How to Decide if a Limited Company is Right for You

There’s no one-size-fits-all answer. The right approach depends on:

1. Your Investment Timeline 
If you plan to grow your portfolio long-term, a company structure may be more tax-efficient.

2. Your Personal Tax Situation 
High-income earners may benefit more from Corporation Tax vs. higher-rate Income Tax.

3. Your Exit Strategy 
If you plan to sell in the future, consider the CGT and SDLT costs before making a move.

4. Your Need for Flexibility 
If you need access to profits regularly, the tax on dividends might outweigh company benefits.

Making the Transition: What You Need to Know

If incorporating makes sense for you, here’s what to expect:

1. Register a Limited Company: This involves setting up a legal entity with Companies House.
2. Transfer Properties: Expect SDLT and CGT costs unless you qualify for Incorporation Relief (which is rare).
3. Secure Financing: Speak with mortgage lenders to see what options are available for company-owned properties.
4. Get Expert Advice: This is not a DIY decision. The right strategy depends on your specific goals and tax position.

Get the Business You Want

At Carthy Accountants, we’ve got your back. Deciding how to structure your property portfolio is a major financial decision - one that should be guided by expert advice, not guesswork.

Get in touch today to discuss your options and build a property investment strategy that works for you.

The post Should Your Property Portfolio Be in a Limited Company? appeared first on Carthy Accountants.

Many landlords get caught out because they don’t realise CGT returns must be submitted within 60 days of the sale, and the tax must be paid within the same timeframe.

How Is Capital Gains Tax Calculated?

When selling a property that wasn’t always your main residence, you’ll be taxed on the profit (gain) from the sale. This is calculated as follows:

Sale Price – (Purchase Price + Deductible Costs + Capital Improvements) = Taxable Gain

• Deductible Costs include solicitor and estate agent fees.
• Capital Improvements (e.g. an extension or major renovation) can reduce your taxable gain.

Can You Reduce Your Capital Gains Tax Bill?

Some reliefs and allowances may help lower your tax bill:

• Private Residence Relief – If you lived in the property at any point, you may qualify for partial relief.
• Annual CGT Allowance – You may be able to use the tax-free CGT allowance for the year to offset some of your gain.

The 60-Day Rule: Don’t Get Caught Out!

Once you sell your rental property:

• You must file a Capital Gains Tax return within 60 days
• You must pay any tax owed within 60 days

Miss the deadline, and HMRC will issue penalties - something no landlord wants!

How Carthy Accountants Can Help

At Carthy Accountants, we help landlords calculate, report, and pay CGT on time, so there are no nasty surprises.

Watch Lucy explain more below

Selling a rental property? Let’s make sure it’s done tax-efficiently. Get in touch today.

Get the Business You Want

Selling a rental property comes with tax responsibilities, but you don’t have to navigate them alone. At Carthy Accountants, we’ll help you calculate your Capital Gains Tax, claim any available reliefs, and ensure you meet the 60-day HMRC deadline, so you avoid unnecessary penalties.

Whether you’re planning a sale now or in the future, having the right financial strategy in place can save you time, money, and stress. Let’s make sure you get the business (and financial freedom) you want.

Get in touch today and let’s talk about your property tax strategy!

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