Capital Gains

If you are UK resident, you must report and pay UK Capital Gains Tax on gains from the disposal of overseas assets, including foreign property, shares, and investments. Double taxation agreements may provide relief if you have also paid tax on the gain in the country where the asset is located. Gains must be reported on your Self Assessment tax return.

In most cases, no. Your main residence is exempt from Capital Gains Tax under Private Residence Relief. However, if you have let the property, used part of it for business, or it is not your only home, a proportion of the gain may be taxable. CGT may also apply if the garden or grounds exceed half a hectare.

The Capital Gains Tax annual exempt amount for individuals is currently £3,000 per tax year. Gains below this threshold are not subject to CGT. Gains above this amount are taxed at 18% or 24% for residential property, and 10% or 20% for other assets, depending on your income tax band.