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Capital gains
Capital Gains Tax was introduced in 1965. It was aimed at preventing avoidance after some high-profile court cases. HMRC view it as a tax with a dual role of stopping avoidance alongside raising revenue.

Main residence reliefs
If you have more than one house, you can elect which of them is to benefit from the exemption from Capital Gains Tax (CGT).
However, there is only a two-year window to make this election from the acquisition of the second or subsequent home. In the absence of an election the question of which of the two residences will be exempt from CGT as a main residence is decided as a question of fact. So check if you are still in the two year window.
CGT filing & payment
If you sell UK residential property at a gain you must file a CGT return within 60 days, and any CGT should be paid then.
Since 30 October 2024, capital gains on all asset disposals, including on residential property have been taxed at the same rate of 24%.
However, there is an exception. "Carried Interests" in funds will be taxed at 28%, rising to 32% next tax year and possibly liable to Income Tax and NIC from 5 April 2026.
Swap your elected main residence
If you have two homes, consider making a main residence election for your second home if it is standing at a larger gain or you are likely to sell it first.
Recent cases have demonstrated that the owner must establish a period of residence. The quality, rather than quantity, of occupation of the relevant property is important.
Defer capital gains
If you sold an asset during 2024/25 that had been used in your business and you realised a capital gain, the gain can be rolled over if you buy another qualifying business asset within three years.
Alternatively, if a qualifying investment in an asset used in a business was made in 2024/25, you can match this with a gain on disposal of another qualifying business asset within 12 months to roll over the gain that would otherwise have been taxed in 2024/25.
Speak to your tax advisor if you are unsure as to whether your fact pattern is applicable.

Tax of crypto and CFDs
The sale of cryptocurrency at a gain will usually be subject to CGT as if a UK asset had been sold. Therefore, it will need to be treated as a UK disposal of an investment even for non-domiciled individuals. Similar considerations apply to a profit on Contracts for Differences (CFDs).
However
- This is based on HMRC’s view and practice, not the law
- HMRC's view is that CGT applies in most situations
- ‘Stablecoins’ are sited for UK CGT purposes where the assets on which they are “linked” are located, so unlike other cryptocurrencies stablecoins may be non-UK sited. This is of special relevance to UK resident but non-domiciled individuals or trusts that own stablecoins directly up to the end of this tax year, after which domicile will cease to be a connecting factor to UK tax. It will still be an important consideration to new UK residents in their first four years of UK residence.
- Decentralized finance (DeFi) is an emerging financial technology based on secure distributed ledgers similar to those used by cryptocurrencies. The UK tax of “owners” of DeFi is complex.
- Also, if your crypto position is liquidated you may not receive the capital loss treatment that you may be expecting.
- Is there UK tax reporting to enable your tax return to be completed efficiently?
To gain certainty of treatment your tax return should disclose the reasons that you have adopted the position taken, and if fully disclosed this limits HMRCs enquiry window to one year.
Cryptocurrency and its related issues are complex. It is a fast-developing area and requires detailed advice before taking any irrevocable action.