One of the more attention-grabbing updates from the 2025 Spring Budget was the immediate increase in Capital Gains Tax (CGT) rates. While this applies to various asset sales, it’s particularly relevant to those in the property market—especially landlords, property investors, and second-home owners.
At Christopher Anthony Property Experts, we’re here to explain what’s changed, who’s affected, and how you can make smart decisions around selling or retaining property in Hampshire and Surrey.
What’s Changed?
From March 2025, the government raised CGT rates for non-property asset sales, aligning them more closely with property CGT rates. The updated rates are:
- Basic rate taxpayers: up from 10% to 18%
- Higher rate taxpayers: up from 20% to 24%
If you’re selling a second home, rental property, or any investment property, your CGT rate remains at 18% (basic) or 28% (higher)—but this change closes the gap and signals a tougher stance on gains in general.
Why This Matters to the Property Market
While this CGT change doesn’t directly raise rates on property sales just yet, it:
- This makes further CGT alignment more likely in future
- Highlights the government’s aim to increase tax on asset wealth
- Adds urgency for those thinking of selling in the near future
Here’s how it may affect different parts of the market:
- Landlords & Second-Home Owners
If you plan to sell a buy-to-let property or second home, CGT is likely already a consideration. This announcement is a reminder to:
- Review your property portfolio
- Consider whether to sell sooner rather than later
- Budget for a potentially higher tax bill if CGT rates rise again
Some landlords in areas like Bracknell, Wokingham, and Reading are considering exiting the market due to tax pressures and regulatory changes (such as the Renters Reform Bill).
- Property Investors
This update may affect the timing and strategy for those flipping properties or holding short-term investments. A quick sale may not be as tax-efficient now, so investors may shift to longer-term holds or rental models instead.
- Sellers Thinking Ahead
If you’re selling a main residence, you’re generally protected by Private Residence Relief, but:
- If part of your property is rented or used for business, CGT may still apply
- Those downsizing or inheriting property should understand their tax exposure
What Should You Do?
Speak to a property-savvy accountant – A tax advisor can help you structure your sale most efficiently.
Factor CGT into your sale strategy – Timing and ownership structure can significantly affect your final return.
Plan early – Last-minute decisions often lead to missed opportunities for relief or tax planning.
Capital Gains Tax can be overlooked in property conversations. However, it can take a real chunk of your profits—especially if you don’t plan ahead. With rising rates and wider tax reform on the horizon, now is the time to review your portfolio and decide your next steps.
At Christopher Anthony Property Experts, we work with property sellers and landlords across Hampshire and Surrey to help them sell at the right time, with the right advice. If you’re considering a move, get in touch—we’ll guide you through the process from valuation to sale, with your tax planning in mind.
