Anyone selling a UK residential property usually needs to report the disposal to HMRC within 60 days of completion. The requirement applies even where the individual is not normally required to report Capital Gains Tax (CGT) through a tax return.

Any CGT due must normally be paid within the same 60-day period. Payment can be made online or by other methods accepted by HMRC, and taxpayers should allow sufficient time for the payment to reach HMRC by the deadline. Where the amount of tax due changes after the property disposal has been reported, the taxpayer may need to update the return and pay any additional amount due. Interest and penalties may apply where a gain is not reported and paid on time.

The gain must be calculated taking into account the costs associated with acquiring and disposing of the property as well as any qualifying improvement costs and any reliefs or exemptions that may apply. Private Residence Relief may be available where the property was the individual's main home.

Importantly, reporting and paying the tax through HMRC's online service does not remove the need to include the disposal on the annual self-assessment tax return where the individual is already registered for self-assessment. 

Non-UK residents have wider reporting obligations and must report all disposals of UK property or land, including where no CGT is due.
 

When a couple divorces or separates, they need to agree how their finances will be divided. This can include property, pensions, savings, investments and maintenance payments. Where possible, reaching an agreement without going to court can be quicker and less expensive. In England and Wales, however, an agreed division of assets will generally need to be approved by a court through a consent order if the couple want the agreement to be legally binding.

Tax is an important consideration when restructuring assets. Under current Capital Gains Tax rules, separating spouses and civil partners are given an extended period during which assets can be transferred between them on a "no gain, no loss" basis, meaning that no immediate Capital Gains Tax (CGT) liability arises. The normal period runs until the earlier of the end of the third tax year following the tax year in which the couple ceased living together, or the date on which their divorce, annulment or civil partnership dissolution becomes final.

There is an important further concession. Where assets are transferred between former spouses or civil partners in accordance with a formal divorce or separation agreement or court order, no gain/no loss treatment can apply without a time limit. This means that qualifying transfers may still benefit from the relief even where they take place some years after the couple separated.

No gain/no loss treatment does not normally eliminate the underlying capital gain. Broadly, the person receiving the asset takes over the transferring partner's CGT base cost, so the accumulated gain may become taxable when the recipient eventually disposes of the asset. Special rules can also apply to the former matrimonial home, including provisions affecting Private Residence Relief.

Anyone dealing with significant matrimonial assets should therefore take specialist legal and tax advice before assets are transferred. The timing and terms of the divorce or separation agreement can have important consequences for the eventual tax position.

When a sole trader or the partners in a partnership transfer a business to a limited company, Capital Gains Tax (CGT) may arise. This is because business assets are normally treated as being transferred at their market value, which may be considerably more than their original cost.

However, Incorporation Relief can allow some or all of the resulting gain to be deferred.

Broadly, the relief may be available where a business is transferred to a company as a going concern, together with all its assets, other than cash if desired, and the consideration received is wholly or partly in shares in the company.

Where the conditions are met, the gain eligible for relief is deducted from the CGT base cost of the shares received. This means that CGT is generally postponed until the shares are eventually sold or otherwise disposed of. If cash or other consideration is received alongside shares, the relief is normally restricted to the proportion of the transfer represented by shares. Part of the gain may therefore become immediately chargeable to CGT.

Incorporation Relief must now be claimed

An important change applies to businesses transferred to companies on or after 6 April 2026. Previously, Incorporation Relief applied automatically where the necessary conditions were satisfied. For transfers from 6 April 2026, the relief must instead be claimed. The claim will normally be made through the Self-Assessment tax return for the tax year in which the transfer takes place.

The claim must be made on or before the first anniversary of 31 January following the tax year in which the business transfer took place. For example, for a transfer during the 2026/27 tax year, the claim deadline will normally be 31 January 2029.

Failing to make a valid claim could therefore result in CGT becoming payable on gains arising when the business is transferred to the company.

Incorporation Relief is not necessarily the best option in every case. Before incorporating a business, it is worth considering the immediate CGT consequences, whether other reliefs may be available and the potential tax position when the company shares are eventually sold.

Professional advice should therefore be obtained before completing a business incorporation, particularly where the business has significant goodwill, property or other assets that have increased substantially in value.