Selling a property for profit sounds great… until the Capital Gains Tax (CGT) bill arrives.

Many investors are caught off guard by how much of their return gets swallowed up by tax. If you’ve ever thought, “there must be a smarter way to manage this”, you’re right.

At GoldHouse, we help UK and international property investors take control of their tax strategy, reduce their CGT exposure and protect more of their profit. Here’s what you need to know.

What is CGT on UK Property?

Capital Gains Tax is a tax on the profit you make when you sell (or ‘dispose of’) a property that has increased in value. It’s not based on the total sale price, just the gain.

You might pay CGT if you:

• Sell a buy-to-let, second home or investment property
• Gift property to someone other than your spouse
• Transfer a property into a company or trust

If it’s not your main home, you’re likely to owe CGT, even if the money is being reinvested.

Rates for Individuals vs Companies

For individuals:

• 18% or 24%, depending on your total taxable income.
• You get an annual CGT allowance of £3,000 (for the 2025/26 tax year).
• Gains above this threshold are taxed at your applicable rate.

For limited companies:

• You don’t pay CGT; instead, you pay Corporation Tax. This currently ranges from 19% (for profits under £50k) up to 25% (for profits over £250k), with a marginal rate of 26.5% in between.
• While companies don’t get the £3,000 annual allowance, they can often offset more expenses, though “double taxation” remains a factor when extracting those profits personally.

Choosing whether to own property personally or via a company is one of the biggest decisions in your tax planning.

CGT Allowances and Reliefs

A good tax strategy uses every tool available. Some key reliefs and allowances include:

• Private Residence Relief (PRR): Available on your main home
• Lettings Relief: Can reduce CGT if you lived in the property
• Annual Exemption: Use your full allowance before tax kicks in
• Spousal Transfers: You can transfer assets between spouses without triggering CGT, useful for splitting gains

These tools can save you thousands, if used correctly and in time.

Strategies to Delay or Reduce CGT

Here’s where smart planning pays off. Tactics include:

• Timing your sale to spread gains across tax years
• Reinvesting profits through a company structure
• Gifting to family strategically (and legally!)
• Spreading ownership between spouses or children
• Reclaiming refurbishment and improvement costs to reduce gain

Planning ahead is key, these strategies rarely work after the sale.

Using Pensions or Trusts

For high-net-worth investors, pensions and trusts offer powerful, long-term CGT solutions.

• SSAS pensions (a Master Trust) can purchase property and grow value tax-free
• Loanbacks from a SSAS can fund your business or development
• Trust structures may reduce exposure and protect assets for future generations

These options need expert setup but they can reduce tax, protect wealth and build legacy.

CGT Reporting Deadlines

You must report and pay CGT within 60 days of selling a UK residential property in your own name and not in a limited company.

Miss the deadline, and penalties apply, even if you didn’t realise you owed tax.

GoldHouse ensures our clients:

• Understand what they owe
• Claim all eligible deductions
• Meet HMRC deadlines without stress

Want to keep more of your property profit?

At GoldHouse, we help landlords, developers, and entrepreneurs across the UK and Dubai structure their portfolios for maximum tax efficiency.

Whether you’re preparing to sell, build your next development or plan for retirement. We’ll help you protect your gains and future-proof your finances.