Split across 5 April
Best£10,876Kept after tax
- Gain
- £12,000
- Exempt amount
- -£6,000
- Capital gains tax
- -£1,124
Realise £3,000 now and £9,000 after 5 April, using two exempt amounts instead of one.
Should I sell this before or after 5 April?
The capital gains exempt amount resets every 6 April and never carries forward. Splitting a disposal across two tax years can use two of them.
On the figures so far
Splitting the disposal across 5 April uses two exempt amounts and saves £720.
The gap is £720 — wide enough to be real, and 2 figures were assumed. To be surer: that the price does not move between the two dates — which is the risk the whole strategy runs, and it is usually larger than the tax.
Refine it in 6 questions below.
The decision
Splitting the disposal across 5 April uses two exempt amounts and saves £720.
£720 better than sell it all before 5 april, on the same figures.
- £3,000Exempt left
- £5,270Basic band left
- 18% / 24%Rate
Why
- The annual exempt amount is £3,000, it resets on 6 April, and it never carries forward — an unused one is simply lost.
- Because the holding can be sold in parts, realising up to this year's remaining exemption now and the rest after 5 April uses two exemptions rather than one.
- On your income, £5,270 of basic-rate band is left, so gains up to that are charged at 18% and the rest at 24%.
- Selling after 5 April also defers the tax by a full year, since it becomes payable on the following 31 January.
Does this apply to you?
Each of these has to be true. Where your answers settle it we have said so; where they cannot, the test is yours to check.
The asset is chargeable, and you have a gain. — met, on your answers
TCGA 1992 s. 1
Some of the annual exempt amount is still unused. — met, on your answers
TCGA 1992 s. 1K
The holding can be sold in parts. — met, on your answers
Not a rule — the practical constraint
You will not buy the same holding back within 30 days. — we cannot tell from your answers
TCGA 1992 s. 106A
You accept the market risk of waiting. — we cannot tell from your answers
Not a tax rule — the risk you are taking
What this does not model
- It does not model the 30-day share matching rule, which cancels the gain if you buy the same holding back within 30 days. Rebuying inside an ISA or in a spouse's name is not caught.
- Transfers between spouses are on a no gain, no loss basis, which can give the couple two exempt amounts and two basic-rate bands — often worth more than the timing.
- Market risk over the waiting period is not modelled and is usually larger than the tax saved.
- It assumes no reliefs apply. Private residence relief, Business Asset Disposal Relief and holdover relief all change the picture entirely.
This is information, not tax or financial advice. It shows how the rules apply to the figures you entered — it does not know the rest of your circumstances. Worth checking with an accountant before you act.
Rates as at 6 April 2026 — the 2026/27 tax year.
What to keep
The figures above are only as good as what sits behind them. These are the records HMRC would ask for.
- Contract notes or completion statements, with dates — the date of disposal is the date of the contract, not the settlement.
- Acquisition cost, and the cost of buying and selling, which are deductible.
- A record of exempt amount already used this tax year.
- Any capital losses brought forward, which are set against gains before the exempt amount.
- For property: a completion statement, because the 60-day clock runs from completion.
The dates that matter
| When | What | If you miss it |
|---|---|---|
| 5 April | The exempt amount resets. It never carries forward. | Whatever is unused is simply lost, and the amount for the year is fixed regardless of what you do afterwards. |
| 60 days after completion | Report and pay capital gains tax on a UK residential property disposal. | Penalties from day 61, and this is separate from and additional to the Self Assessment return. |
| 31 January after the tax year | Report other gains and pay the tax. | Interest from 1 February and a 5% surcharge at 30 days. |
| 4 years after the end of the tax year | Claim a capital loss so it is available to carry forward. | An unclaimed loss cannot be used later. Losses have to be reported to be banked. |
How to actually do it
Work out the gain, after costs
Proceeds less acquisition cost, less the costs of buying and selling, less any capital improvements. Brought-forward losses come off before the exempt amount.
Check how much exempt amount is left
£3,000 a year, shared across all gains, and gone on 6 April. It cannot be carried forward or transferred, other than by giving the asset to a spouse before the sale.
Decide whether to split
For a divisible holding, realising this year's remaining exemption now and the rest after 5 April uses two exemptions rather than one. The dates have to be genuine disposals, not paperwork.
Consider a transfer to a spouse first
Transfers between spouses and civil partners are on a no gain, no loss basis, so the couple can use two exempt amounts and two basic-rate bands. This is usually worth more than the timing.
Report it
Property within 60 days of completion; everything else on the return by 31 January. Report losses too, or they cannot be carried forward.
Worked examples
Three situations, worked through. They use the same rules as the tool above, so you can check the arithmetic against a case near your own.
£5,000 gain on shares, no exemption used, £45,000 income
- All this year
- £2,000 taxable, £360 tax
- Split across 5 April
- Nil taxable, nil tax
- Saving
- £360
Two exempt amounts cover the whole gain. The only cost is holding half the position a few weeks longer.
£30,000 gain, exemption fully used, £60,000 income
- All this year
- £30,000 at 24%
- After 5 April
- £27,000 at 24%
- Saving
- £720, plus a year of deferral
A fresh exempt amount and twelve months before the tax is due. Worth something — but far less than the exposure to a £30,000 gain moving.
£40,000 gain on a rental property
- Divisible
- No
- Reporting
- 60 days from completion
- Rates
- 18% and 24%
- Spouse transfer before sale
- Often worth more than timing
A property cannot be split, so the only lever is the completion date — and transferring a share to a spouse beforehand usually saves more than either date.
The rules behind this
Every figure above comes from one of these. Where we have interpreted rather than calculated, the tool says so.
The annual exempt amount is £3,000 and cannot be carried forward or transferred.
Capital gains are charged at 18% within the basic-rate band and 24% above it.
The date of disposal is the date of the contract, not completion — except for property reporting, which runs from completion.
A disposal is matched against acquisitions of the same class in the following 30 days.
Transfers between spouses and civil partners living together are on a no gain, no loss basis.
UK residential property gains must be reported and paid within 60 days of completion.
Questions people ask
Can I sell and buy back to use the exemption?
Not directly — the 30-day rule matches the repurchase to the sale and cancels the gain. Rebuying inside an ISA, inside a pension, or in a spouse's name all work, because those are different holders or different wrappers.
Which date counts, exchange or completion?
For the tax charge, the date of the contract. For the 60-day property reporting deadline, completion. The two can fall in different tax years, which is exactly the trap.
Is it worth waiting just to defer the tax?
Selling on 6 April rather than 5 April moves the payment date from one 31 January to the next — a full extra year holding the money. Worth something, and never worth a significant price risk.
What about transferring to my spouse first?
Usually the larger saving. A transfer between spouses is no gain, no loss, so the couple gets two exempt amounts and two basic-rate bands. It has to be a genuine outright gift, before the sale.
Do I need to report a loss?
Yes, if you want to use it. Losses have to be claimed within four years of the end of the tax year; once claimed they carry forward indefinitely against future gains.
Software that files it for you
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