Capital Gains Tax Account

If you’ve made a profit from selling an asset — like a second property, shares, or valuable items — you may need to pay Capital Gains Tax (CGT). But understanding how and when to report your gain can be confusing, especially if it’s your first time dealing with HMRC’s online systems.

Here’s a practical breakdown of what a capital gain is, the rules around reporting it, and how to create and manage your Capital Gains Tax account with HMRC.

What Is a Capital Gain?

A capital gain is the profit you make when you sell or dispose of something for more than you paid for it. CGT is charged on the gain, not the total sale value.

Common examples include:

• Selling a second property (not your main home)

• Selling shares not held in an ISA or pension

• Disposing of valuable personal possessions worth more than £6,000

• Selling a business or interest in a business

There’s an annual tax-free allowance, which for 2024/25 is £3,000 for individuals. You only pay tax on gains above this threshold.

What Are the Rules Surrounding Reporting of Capital Gains?

You must report and pay Capital Gains Tax if:

• You sell or dispose of assets that result in gains over the annual allowance

• You sell a UK residential property that’s not your main home and a gain arises

In particular, for UK residential property, you must report the gain and pay any CGT within 60 days of the sale completing. This is done using HMRC’s Capital Gains Tax on UK property service, not the usual Self Assessment return.

If you’re reporting gains on other types of assets, you can either include them in your Self Assessment tax return or report them separately through the CGT service.

How Do I Report My Capital Gain?

There are two main ways to report a capital gain:

1. Through your Self Assessment return (if you already file one)

2. Using the HMRC Capital Gains Tax real time service, which is done via a Capital Gains Tax account

If you’ve sold UK residential property and need to report within 60 days, you must use the second method.

What Is a Capital Gains Tax Account?

A Capital Gains Tax account is an online HMRC account you use specifically to report and pay CGT on disposals of property and other chargeable assets.

It’s separate from your personal tax account or business tax account, but they can be linked.

Through the CGT account, you can:

• Report property sales

• Upload details of the gain

• Calculate what’s owed

• Pay the tax

• View previous CGT submissions

This service is especially important for landlords, second-home owners, and people disposing of property outside of Self Assessment.

How Do I Get a Capital Gains Tax Account?

To create one, go to gov.uk/report-and-pay-capital-gains-tax.

You’ll need a Government Gateway user ID and password. If you don’t have one, you can create one during the sign-up process.

Once logged in, you’ll be asked to:

• Confirm your identity using National Insurance details, a UK passport, or driving licence

• Enter details about the asset sold and the date of sale

• Calculate the gain and any reliefs (HMRC’s system helps with this)

• Submit the report and pay the tax owed

You’ll then be given a CGT reference number for your records.

How Do I Sign Into My Capital Gains Tax Account?

To sign in, go to gov.uk/capital-gains-tax-uk-property and choose ‘Sign in using Government Gateway’.

Use the login credentials you created when registering. If you’ve forgotten your details, there are links to recover your user ID or reset your password.

Once signed in, you can view previous submissions, check payment history, or start a new CGT return.

Final Thoughts        

If you’ve sold an asset for a profit — especially property — you need to understand your responsibilities around Capital Gains Tax. HMRC’s online Capital Gains Tax account makes the process more streamlined, but the timing rules and reporting requirements are strict.

Setting up your account early and keeping accurate records can help avoid penalties and ensure your CGT is dealt with efficiently. If you're unsure whether you need to report a gain, or how to calculate it, speaking with an accountant is a smart move.