12 Practical Ways to Lower Your CGT Bill (2024/25)

1) Use your Annual Exempt Amount (your CGT allowance)

For the 2024/25 tax year, the Annual Exempt Amount (AEA) is:

• £3,000 for individuals
• £1,500 for most trusts

If your total gains for the tax year are within your allowance (after allowable losses), you will generally not pay Capital Gains Tax.

Planning tip:
If you are considering selling more than one asset, spreading disposals across different tax years may allow you to use more than one year’s allowance.

2) Time disposals to use a lower tax band

CGT rates depend on:

• the type of asset, and
• your overall taxable income in the year (as this affects your tax band)

If your income is expected to be lower in a different tax year, timing the disposal can materially reduce the CGT rate you pay.

3) Know the CGT rates (2024/25)

For 2024/25, the main CGT rates are generally:

Residential property (not your main home):

• 18% for gains within the basic rate band
• 24% for gains above the basic rate band

Most other chargeable assets (e.g. shares outside an ISA):

• 10% within the basic rate band
• 20% above the basic rate band

Rates can vary in specific circumstances, so professional advice is recommended for complex or high-value transactions.

4) Offset capital losses (and claim unused losses)

Capital losses can be used to reduce taxable gains. Losses may arise from:

• shares and investments
• certain property disposals
• other chargeable assets

Key point:
Losses usually need to be reported to HMRC (even if no CGT is payable that year) so they can be carried forward.

5) Transfer assets to a spouse or civil partner before selling

Transfers between spouses or civil partners who live together are generally made at no gain / no loss for CGT purposes. This can allow you to:

• use two annual exemptions (£3,000 each), and/or
• keep more gains within the basic rate band, potentially reducing CGT

Transfers must be completed correctly and before the sale or disposal.

6) Check if Private Residence Relief applies (selling your home)

Selling your main home may qualify for Private Residence Relief (PPR), which can reduce or eliminate CGT.

CGT may still arise where:

• the property was not your main home for the full period of ownership
• the property was rented out (rules are now more restrictive)
• part of the home was used exclusively for business purposes

Property CGT is detail-heavy — dates, records and evidence matter.

7) Use ISA and pension wrappers to reduce future CGT

ISAs and pensions do not reduce CGT on gains already made, but they are effective for future planning:

• investments inside an ISA are generally free from UK CGT
• pensions can also be tax efficient (subject to pension rules)

For regular investors, wrappers are one of the most effective long-term CGT planning tools.

8) Consider Business Asset Disposal Relief (BADR)

If you sell all or part of a qualifying business (or certain shares in a trading company), Business Asset Disposal Relief (BADR) may reduce CGT to 10% on qualifying gains.

• Lifetime limit: £1 million of gains (subject to conditions)

The rules are strict (ownership, role, trading status and time conditions), so eligibility should be reviewed early.

9) Claim all allowable costs and reliefs

CGT is calculated after deducting allowable costs. Depending on the asset, these may include:

• buying and selling costs (legal fees, agent fees, stamp duty on purchase)
• qualifying capital improvement costs (not routine repairs)
• valuation fees (where relevant)

Getting the base cost right can significantly reduce CGT.

10) Match gains and losses across your portfolio

If you have both gains and losses, you may be able to:

• sell loss-making assets to offset gains, and/or
• choose which assets to dispose of first to manage CGT across tax years

This is particularly relevant for share portfolios and cryptoassets.

11) Consider gifting — carefully

Gifting assets is often treated as a disposal at market value for CGT purposes.

While planning opportunities may exist (especially for business or estate planning), CGT and inheritance tax implications should always be reviewed together.

12) Don’t miss CGT reporting deadlines

Where a return is required, CGT on UK residential property often needs:

• a CGT property return, and
• payment within strict deadlines

Late reporting can result in penalties and interest.

Simple example (illustrative only)

If you make a gain of £12,000 on shares outside an ISA in 2024/25 and have no capital losses:

• Less AEA: £3,000
• Taxable gain: £9,000

The CGT rate depends on your tax band (often 10% or 20% for shares).

A spouse transfer before sale may allow the use of two exemptions and potentially reduce the CGT rate.

How Coreadviz Accountants Can Help

CGT planning is most effective before you sell. Coreadviz Accountants can help you:

• calculate CGT accurately, including base and improvement costs
• plan disposals across tax years
• assess spouse or civil partner transfer planning
• review Private Residence Relief and property CGT reporting
• check eligibility for Business Asset Disposal Relief

Contact Coreadviz Accountants for a clear CGT estimate and a practical, legal plan to reduce your tax exposure.

This guide reflects UK tax rules for the 2024/25 tax year. Tax rules can change and outcomes depend on individual circumstances. Professional advice should be taken before acting.