6 Proven Ways to Reduce Your CGT Liability

If you’re a property owner in the UK, you’ve likely felt the sting of Capital Gains Tax (CGT) when selling a second property or investment. But what if there were legal and strategic ways to reduce, or even avoid, Capital Gains Tax?

At Haggards Crowther, we specialise in CGT planning, trusts & estates, and inheritance tax reduction, helping people like you protect your wealth and secure your legacy.

Read on to discover how to avoid Capital Gains Tax UK property owners face, the reliefs you may be missing, and why acting now could save you thousands of pounds.

Why is Capital Gains Tax So Costly?

Capital Gains Tax can considerably erode the profit from the sale of assets such as property, shares, or other investments. CGT applies to the profit made when selling an asset that has increased in value since its acquisition.

For property owners, the current CGT rates can be particularly impactful. As of 2025, the rates for residential properties are as follows:

• 18% for basic rate taxpayers
• 25% for higher-rate taxpayers

For other assets, such as shares, the rates are:

• 10% for basic rate taxpayers
• 20% for higher-rate taxpayers

The CGT rate you pay depends on your taxable income. Higher earners face a higher rate, and with property, often yielding significant gains, the tax impact can be substantial. For example, selling a second home or investment property could result in a hefty bill if not carefully planned.

If you’re unsure about your position, our experts can guide you.

How to Reduce Your CGT Liability

There are several strategies available that can help you legally reduce your Capital Gains Tax bill. Here are some of the most effective options to consider:

1. Make Use of Capital Gains Tax Reliefs

Many property owners are unaware of the valuable CGT reliefs available to them, such as:

• Private Residence Relief (PRR): If the property was your main home for part of the ownership period, you may be eligible for PRR to reduce your taxable gain.
• Lettings Relief: Previously more generous, this still applies in certain circumstances, especially if you’ve shared the property with a tenant.
• Spousal Transfers: If you transfer assets to a spouse or civil partner, you can utilise both CGT allowances and potentially avoid Capital Gains Tax on a larger portion of the gain.

Curious to know if you qualify? Speak to our team today and explore your options.

2. Use Strategic Timing and Annual Exemptions

You can currently earn up to £3,000 tax-free (2025/26) from gains before CGT applies.

If you plan ahead, you can stagger asset sales across tax years to maximise this allowance.

Even better, with our expert CGT planning service, we’ll create a tailored disposal strategy so you can avoid costly missteps and keep more of your profits.

3. Consider Gifting and Trusts

Setting up a trust can be an effective way to reduce Capital Gains Tax on shares and property.

When structured correctly, trusts allow you to transfer ownership while still benefiting your family, without triggering immediate CGT.

At Haggards Crowther, our trusts & estates specialists offer bespoke solutions for wealth transfer, succession planning, and minimising tax exposure.

4. Offset with Allowable Losses

Did you know that capital losses from other investments (like underperforming shares) can be used to offset your property gain?

Our team will help you identify and report allowable losses, so you can reduce your CGT liability and make the most of past investment mistakes.

5. Combining Inheritance Tax and CGT

Capital Gains Tax doesn’t work in isolation. For many property owners, inheritance tax (IHT) is also a major concern.

That’s why we offer integrated planning that aligns your CGT strategy with your inheritance tax reduction goals.

By taking a holistic approach, we can help you preserve your estate, support your loved ones, and minimise tax at every stage of life.

Why Work With Haggards Crowther?

We’re more than accountants, we’re experts in wealth preservation for individuals.

• Specialist Knowledge: We understand the complete tax laws surrounding property, CGT, trusts, and estates.
• Tailored Advice: No cookie-cutter solutions. Just personalised and proactive planning.
• Discreet and Trusted: Your privacy, your health, and your legacy are in safe hands.

Ready to Start Reducing Your CGT Bill?

The sooner you act, the more options you have.

Don’t leave it until the sale is agreed. Start planning today to ensure you’re not overpaying on your next property sale.

Book a confidential consultation with our tax specialists today to discover how to:

• Legally avoid Capital Gains Tax under UK rules
• Create smart structures using trusts and estates
• Maximise Capital Gains Tax relief
• Protect your wealth for future generations

Contact us today by calling 020 7384 0920 or emailing enquiries@haggards.co.uk to start your CGT-saving journey with Haggards Crowther.

Alternatively, if you want more detailed tips on how to cut your CGT bill in 2025, check out our latest blog on How to Pay Less Capital Gains Tax in 2025.

Terry Smith

Terry started life at HM Revenue and Customs before moving to Ashdens and then on to BDO and Chantrey Vellacott, the combination of which has provided Terry with a wide breadth of experience which has proved invaluable when helping a broad range of clients with their tax affairs.

Whether it involves meticulously organising a client’s tax affairs or leveraging his expertise to mitigate their tax exposure, Terry has a passion for delivering tangible results.