Are You Accidentally Giving HMRC a Bonus?
You sold some shares. Or offloaded a rental. Nothing dramatic, just tidying up your finances. But thanks to the quiet Capital Gains Tax changes in 2025, that tidy-up might have cost you more than it should’ve. The allowance is down. Rates are up. And for many people, CGT is no longer just a “problem for the wealthy.” It’s a tax trap hiding in plain sight. So ask yourself: did you plan your gain… or just press ‘sell’ and hope for the best?
The Rules Now: What’s Actually Changed?
Capital Gains Tax in 2025 looks very different from just a year ago.
- For most assets, Labour’s changes increased basic-rate CGT from 10% to 18% and higher-rate CGT from 20% to 24%, but only for disposals made after 30 October 2024.
- The annual exemption, once a generous £12,300 in 2022-23, dropped to £6,000 in 2023-24, and now stands at just £3,000 from 6 April 2024. It’s expected to remain at this level for 2025-26.
- That means if you realise £20,000 in capital gains this year and you’re a higher-rate taxpayer, you could owe over £4,000 in tax. Before 2025, it would’ve been closer to £1,500. And if you sold assets jointly with a spouse but only used one person’s exemption? You’ve potentially doubled your bill for no reason.
Why It’s Easy to Overpay
CGT isn’t collected at the source. It’s self-reported, often through self-assessment, and that’s where costly mistakes creep in.
- One-off sales of stocks, crypto, or property feel isolated, but they add up
- The reduced exemption catches investors who were previously under the radar
- Bulk disposals made without timing or strategy can push gains into higher brackets
Reminder for property sellers: If you sell a UK residential property and owe CGT, you must report and pay it within 60 days of completion using HMRC’s online system. Miss this, and you could face penalties.
Here’s a common scenario:
You sell £30,000 of long-held shares. You use your £3,000 exemption and pay 24% on the rest – over £6,400 in tax. Had this been done before 6 April 2023, with the £12,300 exemption and 20% rate, your bill could’ve been closer to £3,540. And if you’d staggered the sale over two tax years, or used a spouse’s allowance, the savings could have been even more.
What Your Adviser Knows That You Might Not
Smart CGT planning isn’t about loopholes. It’s about using the rules to your advantage. The difference between winging it and working with an adviser? Often four figures.
Here’s what we help clients do:
- Use both exemptions – Married couples and civil partners can transfer assets between themselves with no CGT. That doubles your allowance to £6,000.
- Time disposals – Selling assets just before or just after 6 April can shift you into a different tax year, creating opportunities to reset your exemption.
- Offset losses – If you’ve sold assets at a loss (even in past years), those losses can be used to reduce your current taxable gains – but only if claimed within four years. If you miss the deadline, the relief is lost.
- Wrap gains inside ISAs and pensions – Capital gains don’t apply inside tax wrappers. Regularly transferring assets into these shelters (when possible) protects future growth.
- Reduce bracket creep – Thought you were a basic-rate taxpayer? Your gains are added to your income, and one sale can bump you into a higher rate without you realising.
And crucially, we help clients plan ahead, not panic afterwards.
A 15-Minute Review Could Save You £1,000+
You don’t need to be a millionaire to benefit from CGT planning in 2025. In fact, it’s often investors with £20k–£100k in taxable assets who are caught out, because they assume they’re “too small” to be affected.
But HMRC isn’t guessing anymore. They may not receive real-time alerts from brokerage platforms, but they do get annual reports of share disposals, and their data-matching tools are becoming increasingly sophisticated.
The key question is: Are you making the most of what you’re allowed?
If you’re unsure:
- When did you last review your holdings?
- Have you used your current-year allowance?
- Are you carrying forward any unused losses?
- Do you know how your gains will impact your income tax bracket?
If not, now’s the time.
Final Nudge: Book Your CGT Health Check
The rules have changed. Your strategy should, too. Whether you’ve already made disposals in 2025 or are thinking about it before April, there’s still time to cut your tax bill – but only if you plan early.
At Cedar House Financial, we work with individuals and couples to reduce CGT exposure without compromising their investment goals. A short review today could save you far more in the long run.
📞 Call 020 8366 4400
📧 Or email enquiries@cedarhfs.co.uk to book your CGT check-in