A landlord planning to sell two BTL properties to fund retirement. Combined estimated gains of around £115,000.
Both sales were being arranged for March — the same tax year.
The client wanted everything wrapped up quickly and hadn’t considered the tax year timing.
What We Identified
Selling both in the same tax year meant only one annual exempt amount (£3,000) was available.
Both gains would stack on top of employment income, pushing the full amount into the higher CGT rate.
By completing one sale before 5 April and the second after 6 April, the client would access two annual exempt amounts and — because retirement reduced their income in the new tax year — part of the second gain would fall within the basic rate band at 18% instead of 24%.
How We Approached It
Modelled both scenarios: same-year disposal vs split across two tax years.
Coordinated with the client’s solicitor on completion timing.
Ensured the first sale completed before 5 April and the second was exchanged with a completion date after 6 April.
Filed 60-day reports for both disposals in the correct tax years.
Outcome
Two annual exempt amounts saved approximately £720 in CGT. Basic rate band utilisation on part of the second gain saved a further £2,600 or so. Total saving from timing alone: approximately £3,300. No additional cost to the client — just planning.
