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Article by GoSimpleTax

You may not have paid any Capital Gains Tax so far. It’s not as common as Income Tax, National Insurance or VAT. And you may not be planning to pay Capital Gains Tax for some time yet, but one day that may change, so it pays to understand a few Capital Gains Tax basics.

It might enable you to plan now to minimise your Capital Gains Tax liabilities. And significant changes have been introduced, too, so, what key Capital Gains Tax facts should you and other UK landlords know?   

Capital Gains Tax: the basics

1 Capital Gains Tax (CGT) can be payable on the gain (ie profit) you make when you “dispose of” (ie sell, give away or swap) a “chargeable asset” (ie something valuable that you owned).

2 You only pay CGT on the gain, which is the difference between how much you bought a chargeable asset for (or value when it came into your possession) and how much it was worth when you disposed of it.

3 Chargeable assets include most personal possessions worth £6,000 or more, including non ISA or PEP shares, a business or its assets, property that isn’t your main home (eg rental properties) or your main home if it’s very large, you’ve rented it out or used it for business.

4 You may have to pay CGT if you’re domiciled in the UK but sell an overseas property or dispose of another chargeable asset located overseas.

5 You may have to pay CGT on gains you make on UK property/land even if you’re non-resident for tax purposes. CGT is not payable on other UK assets unless you return to the UK within five years or you sell shares in a company whereby 75% or more of its gross asset value is UK land.

6 Capital Gains Tax is not payable on assets that you gift or sell to your spouse or civil partner (as long as you’re not separated and have lived together in that tax year, but you can’t gift assets to their business for sale).

Did you know? Disposal of cryptocurrency can be subject to Capital Gains Tax, but disposal of your car isn’t. Moreover, CGT does not apply to ISAs, PEPs, UK government gilts, Premium Bonds, betting or lottery winnings.

Capital Gains Tax reliefs, allowances and rates

6 If you co-own a chargeable asset, you only pay CGT on your share of the gain post disposal. This can include rental property, of course.

7 There is a CGT tax-free allowance – the “Annual Exempt Amount” – which is worth up to £3,000 a year (£1,500 for trusts – 2025/26 tax year). CGT is only payable on gains above this threshold.

8  Tax reliefs may be claimable on some chargeable assets, while losses can also be deductible. They can both reduce your CGT liability significantly.

Need to know! Even if your total annual gains are below the tax-free allowance and no CGT is due, you must report your gains in your tax return if you sold the asset(s) for more than £50,000 and you’re registered for Self Assessment.

9 The amount of Capital Gains Tax you pay is determined by which type of asset you sold, the Income Tax bracket into which your total income falls and the value of your gain.

• If you’re a higher or additional rate Income tax payer (ie annual income of  £50,271or more), you’ll pay 24% on your gains from disposal of residential property and other chargeable assets (2025/26 tax year).

• If you’re a basic rate Income Tax payer (ie annual income between £12,571 and £50,270), you’ll pay 18% on your gains from disposal of residential property and other chargeable assets (2025/26 tax year).

Need to know! CGT rates have increased significantly since 30 October 2024. You can find out CGT rates and thresholds for previous years on government website GOV.UK.

Reporting capital gains

10 You won’t get a Capital Gains Tax bill from HMRC. You must report your total gains above your tax-free allowance during a tax year.

11 If you’ve sold a UK residential property with a completion date of 27 October 2021 or later, you must report your taxable capital gains and pay any tax due within 60 days.

12 Landlords (or ex-landlords) must use a Capital Gains Tax on UK property account to report and pay any CGT due on UK residential property. You sign in with your HMRC online username and password to use this service (contact HMRC if you need help).

13 To report gains using this service you’ll need the:

• Full property address and postcode
• Date you became the property owner
• Date you exchanged contracts when you were disposing of the property
• Date you stopped being the property’s owner (ie the completion date)
• Value of the property when it became yours
• Value of the property when you disposed of it
• Costs of buying, selling or improving the property
• Details of any tax reliefs, allowances or exemptions you want to claim
• Property type, if you’re a non-resident.

14 If you have other taxable gains that you need to report (eg gains made from selling a business), you complete an annual Self Assessment tax return. You’ll need to register for Self Assessment, if you’re not already registered. As well as the main eight-page tax return (ie the SA100), you’ll also need to complete supplementary pages Self Assessment: Capital gains summary (SA108).

15 Before you can report any capital gains via Self Assessment you’ll need to know:

• how much you bought and sold the asset for
• the dates when your ownership began and ceased
• details of the costs of buying, selling or improving the asset
• any tax reliefs/allowances you can claim
• calculations for each capital gain/loss you need to report.

Need to know! More in-depth information about how to report and pay Capital Gains Tax on UK property can be found on government website GOV.UK.

If you are planning to sell one or more of your rental properties or you know you will soon receive another taxable gain from disposal of another chargeable asset, seeking tailored professional tax advice is highly recommended.

About GoSimpleTax

Simple, straightforward and designed to save you time and money. GoSimpleTax is a fully HMRC recognised online tax software for anyone who needs to file a Self Assessment tax return.

Get started with GoSimpleTax today and take advantage of a 30 day free trial.

As the way we work continues to evolve, more small businesses are embracing remote-friendly solutions to stay agile, cost-effective and competitive. One option that stands out is a virtual office —  an ideal setup for entrepreneurs looking to streamline operations and enhance their professional image without the burden of a traditional workspace.

At MYCO, we provide flexible packages designed to support business growth. From cutting overhead costs to increasing brand credibility, here’s how a virtual office can make a powerful difference to your business.

1. Cut Costs Without Compromising Quality

Running a physical office comes with significant expenses — rent, utilities, furniture, and equipment all add up quickly. A virtual office offers a smart alternative. With MYCO’s flexible packages, you can gain access to a distinguished business address, mail handling and call answering services at a budget friendly cost. It’s everything you need to present a credible image, without the high monthly overhead.

2. Establish a Credible, Professional Presence

First impressions matter. Whether you’re a start-up or a well-established company, a prestigious address on your website, emails, and business cards can instantly elevate your brand’s image. Our virtual office solutions offer access to prime locations, ensuring your business is represented by a trusted, professional image at all times.

3. Stay Flexible and Mobile

In today’s fast-paced business world, flexibility is crucial. A virtual office allows you to work from anywhere while staying connected with your clients. Whether you’re travelling, working remotely, or managing multiple projects, our services ensure you maintain a consistent presence. By offloading administrative tasks, you can focus on what truly matters to your business.

4. Enjoy Better Work-Life Balance

Business efficiency isn’t just about operations — it’s about personal well-being too. By eliminating the daily commute and the demands of office management, you can reclaim valuable time for personal pursuits while staying focused and productive. Let us handle the logistics, so you can dedicate more energy to building your business.

5. Access Meeting Rooms When You Need Them

While virtual offices offer flexibility, there are times when in-person meetings are essential. That’s why we offer fully equipped meeting rooms available for on-demand booking as part of our packages. Whether you’re meeting clients, conducting interviews, or holding team sessions, you’ll have access to an established environment — without the commitment or cost of a permanent office. Enjoy the convenience you need and only pay for a meeting space when you need it.

6. Boost Efficiency and Focus

By outsourcing day-to-day operations, you free up time to concentrate on expanding your business venture. Without the distractions of managing a physical workspace, you can concentrate on strategic initiatives, customer engagement, and scaling your offerings. With a virtual office, you work smarter, not harder.

Ready to take your business to the next level?

Explore MYCO’s virtual office packages today and discover how we can help you stay professional, productive, and ready for the future of your business.

To learn more, click here.

If you’d prefer to speak with a friendly member of our team to find the perfect package for you, call us at 0330 441 4004 or email us at contact@mycosupport.co.uk. You can also connect with us instantly through our Live Chat.

Article by GoSimpleTax

The new UK tax year began on 6 April, as it has for more than 225 years. As well as being the date when UK tax rules can change, it can also be a great time for sole traders and landlords to make simple changes that leave them better organised, more in control and better off. Even small changes can make a big difference. So, what improvements should you make?

1. Reconsider your prices/rent

Your costs are likely to have increased in many if not all areas in the past 12 months. And although you might be nervous about increasing your prices or rent, for fear of losing customers or tenants, not doing so will leave you worse off. Knowledge of your market should tell you whether you can increase your prices/rent and, if so, by how much. You also need to be mindful of how much others charge, because you must remain competitive. Customers and tenants may appreciate why you’ve put up your prices/rent. Obviously, there are rules regarding rent increases.  

2. Minimise your costs

Keeping a tight lid on your costs should always be a top priority. It’s essential if you want to keep your sole trader cash flow healthy or protect your landlord profits. Assess your current sole trader or landlord costs. All of them. Are you wasting money anywhere? Are you being charged too much by some suppliers? Could you be getting better value? Find cost-savings where possible. Try to negotiate better deals with your suppliers. If you’re a sole trader, set monthly spending budgets and stick to them, because spending too much can have disastrous consequences.  

3. Better organise your financial records

With Making Tax Digital for Income Tax due to be introduced, now’s the right time to start using accounting software. If you’re already using it, maybe you need superior accounting software that’s better suited to your needs. Get into the habit of updating your financial records more frequently. A “little and often” approach can make bookkeeping much less painful, while your figures will be more useful to you. Set aside time each week (month latest) to fully update your financial records. Use all of the time- and effort-saving features your accounting software offers. Record and categorise your costs and expenses as they arise (linking a credit/bank account to accounting software can make this really easy).

4. Start working with cash flow forecasts

When businesses fail, it’s usually because they’ve run out of cash and can’t pay their bills when required. The best way to try to avoid serious cash flow problems is to produce cash flow forecasts based on estimated likely future income and costs/expenses. Comparing the two enables you to identify times when you’re at risk of running out of cash, so you can do something about it now, when you still have time.

5. Put enough money away each month for tax

Suddenly being confronted with a tax bill that you can’t pay is literally the stuff of nightmares. It’s far better to put away a percentage of your monthly income (20%-25%) into a separate bank account, so that you have enough set aside to cover your tax bill. Government website GOV.UK has a free online tool that will give you an estimated Self Assessment tax bill based on the weekly or monthly income figure you enter. Accounting software can also tell you roughly how much tax you owe based on the figures you record.   

6. File your Self Assessment tax return sooner

Why not get your Self Assessment tax return done and filed much earlier this year? Who needs all of the hassle and panic every January, as the online filing deadline fast approaches? You can file any time after the new tax year begins on 6 April (each year, some 300,000 people file their tax return in the first week of the new tax year, almost 10 months before the online filing deadline). Filing earlier doesn’t mean you have to pay your tax bill any sooner, but it will mean that you know how much tax you owe much sooner, so you can budget and save to pay your bill when due. You may even be lucky enough to find out much sooner that you’re due a tax refund.

7. Find out about UK tax changes for 2025/26

Several important changes to tax rules will be introduced in April 2025 and some might affect you. These include:

• A rise in employers’ National Insurance contributions (NIC) by 1.2% from 13.8% to 15%. And the threshold at which employer NICs become payable will fall from £9,100 to £5,000, which many employers certainly won’t welcome.

• Thankfully, the Employment Allowance will become more generous. Currently, it enables businesses with employer NIC bills of £100,000 or less in the previous tax year to deduct £5,000 from their employers’ NIC bill. From 6 April, the allowance will rise from £5,000 to £10,500, and the £100,000 threshold will be removed, which will enable more employers to benefit.

• Some minor inflationary changes to Scottish Income Tax thresholds will also take effect from 6 April 2026.

• Voluntary National Insurance rates will increase slightly for 2025-26. Class 2 NICs will rise to £3.50 a week, while Class 3 NICs will increase to £17.75 a week.

• National Living Wage (NLW) and National Minimum Wage (NMW) increases will take effect from 1 April 2025:

• For 21 year olds and over, NLW will rise to £12.21 per hour.
• For 18 to 20 year olds, NMW will rise to £10.00 per hour.
• For 16 to 17 year olds, NMW will rise to £7.55 per hour.

• From April 2025, the Furnished Holiday Lettings (FHL) tax regime will be no more. Income and gains from FHL properties will be subject to tax treatment in line with all other income and gains from property.

About GoSimpleTax

Simple, straightforward and designed to save you time and money. GoSimpleTax is a fully HMRC recognised online tax software for anyone who needs to file a Self Assessment tax return.

Get started with GoSimpleTax it’s free to try!