In the UK, if you sell certain assets (like property or shares) and make a profit (capital gain), you might need to pay Capital Gains Tax (CGT).

For some types of property, you must report and pay it separately and sooner—this is called a Real-Time Capital Gains Tax Return.

When do you need to file a Real-Time CGT Return?

You must file a real-time CGT return if:

1. You sell UK residential property that is not your main home (e.g., a rental property, holiday home, or second home).
2. You make a taxable capital gain (i.e., the profit is above your tax-free allowance, called the Annual Exempt Amount).
3. You owe CGT on the sale (e.g., because it isn’t covered by reliefs or allowances).

How soon must you report and pay?

• 60 days from the sale completion date
• You must calculate the CGT due and pay it at the same time as submitting the return.

What if you’re already filing a Self Assessment return?

• You still need to file a real-time CGT return if the property sale meets the criteria above.
• Later, you also report it in your Self Assessment to confirm the final tax amount (any overpayment or underpayment is adjusted then).

What types of property sales don’t need a real-time CGT return?

• If the property is your main home and qualifies for Private Residence Relief (so no tax is due).
• If your total capital gains in the tax year are below the Annual Exempt Amount (£6,000 for 2023/24).
• If you sell non-property assets like shares (these are reported in the normal Self Assessment).

What happens if you miss the deadline?

• Late filing penalties apply (starting from £100).
• Interest is charged on late tax payments.

If you purchase a double cab pick-up with a payload of one tonne or more before 1 April 2025 for corporation tax, or 6 April 2025 for income tax, you can enjoy the favourable tax treatment available on vehicles primarily suited to the conveyance of goods. These include:

• 100% annual investment allowance;
• full expensing; and
• flat rate benefit in kind value.

Double cab pick-ups purchased after those dates will lose the beneficial treatment as they will be classified as cars.

Employers that have purchased, leased or ordered a double cab pick-up before 6 April 2025 can benefit from the previous benefit in kind treatment until the earlier of: disposal of the vehicle; expiry of the lease; or 5 April 2029.

Businesses and individuals can continue to deduct the full cost of zero-emission vehicles and electric vehicle charge-points from their taxable profits until 31 March 2026 for corporation tax and 5 April 2026 for income tax.

Where a business provides a company car to an employee there will be a benefits-in-kind tax charge based on the emissions of the vehicle. The appropriate percentages for 2028-29 and 2029-30 have now been set with significant increases across the board. The largest increase is levied on hybrid models, widening the gap between hybrid and fully electric vehicles for tax purposes.

The appropriate percentage for vehicles with zero emissions will increase by two percentage points per year to 7% in 2028-29 and 9% in 2029-30.

Currently, there is a sliding scale for hybrid vehicles with the appropriate percentage increasing as the electric range reduces. From 2028-29 there will be one rate applied to all hybrid and other vehicles producing 1g to 50g CO2 per km, regardless of the electric range. This will be 18% for 2028-29 and 19% for 2029-30.

For all other emission bands the rate will increase by one percentage point per year to maximums of 38% and 39% for 2028-29 and 2029-30 respectively.

Fuel benefits for cars and vans and the flat rate benefit charge on a company van will increase in line with the September 2024 consumer prices index with effect from 6 April 2025.

The rates of capital gains tax (CGT) payable on gains arising from assets other than residential property have been increased with immediate effect

Those taxpayers who decided to accelerate planned investment disposals before the Budget in anticipation of the predicted CGT hike will be pleased with their decision. From 30 October 2024 CGT is payable on profits from selling assets such as shares and commercial property at 18% (up from 10%) for gains falling into the taxpayer’s basic rate band and 24% (up from 20%) at the higher or additional rate.

This brings the rates in line with CGT on residential property disposals, which will remain at 18% for basic rate and 24% for higher rate taxpayers.

The CGT rate applied to a transaction will be the rate prevailing at the date of exchange. Where a contract is unconditional, this will be the date on which the contract is signed.

Business asset disposal relief (BADR) offers a reduced CGT rate of 10% for qualifying business disposals, subject to a lifetime maximum of £1m. The lifetime limit will be maintained, however the rates applying to BADR will gradually creep up from 10% to 14% on 6 April 2025 and to 18% on 6 April 2026.

Reliefs

For assets that qualify for investors’ relief, the lifetime limit is reduced from £10m to £1m from 30 October 2024 and the rate will increase from 10% to 14% on 6 April 2025.

The Chancellor has announced that the main rate of secondary Class 1 national insurance contributions (NIC) for employers will increase by 1.2 percentage points from 13.8% to 15% from April 2025.

The Class 1A and Class 1B employer rates (relating to benefits) will also increase in line with this.

As well as the rate increase, the earnings threshold above which employer’s national insurance is payable on an individual’s earnings will be slashed from £9,100 to £5,000 per annum. This means that an extra £4,100 per employee will be subject to employer’s NIC at 15%.

To soften the blow the employment allowance, which allows companies to reduce their national insurance liability, will be increased from £5,000 to £10,500. Currently the employment allowance is only available to businesses whose total secondary Class 1 NIC liability is less than £100,000. This limit will be removed from April 2025.

Some smaller businesses may find that their employer’s NIC burden is reduced overall following these changes.

There are certain circumstances where the employment allowance is restricted, for example where a company consists of only one single director and no other employees.

Where two or more companies are connected, the employment allowance is only available for one of the companies in the group. Companies are connected if:

• one company controls another; or
• both companies are controlled by the same person or group of people.

Contact us if you are unsure whether the employment allowance is available to your business.