UK Tax – Capital Gains on Disposal of Residential Property

Capital Gains Tax is a tax on the gain you make when you sell your UK property (You
need to let Her Majesty’s Revenue and Customs (HRMC) know of your property disposal).

The 2018/2019 Capital Gains tax rate is 18% for individual and 20% for company.

The Capital Gains tax-free allowance is£11,700. Joint owners who are married will
each be entitled to the tax free allowance of £11,700.

Calculation of Capital Gains Tax example:

Capital gain £15,700
Less Tax-free allowance £11,700
Taxable income (residential property) £4,000

£4,000 x 18%
You pay £720 capital gains tax