Glossary definition
CGT (Capital Gains Tax)
A tax on the profit made when you sell or dispose of an asset that has increased in value, including property. In the UK, CGT rates for residential property are higher than for other assets, currently at 18% for basic rate taxpayers and 24% for higher rate taxpayers.
Definition
A tax on the profit made when you sell or dispose of an asset that has increased in value, including property. In the UK, CGT rates for residential property are higher than for other assets, currently at 18% for basic rate taxpayers and 24% for higher rate taxpayers. CGT is a significant consideration for developers and investors when planning exit strategies and structuring ownership of development sites.
See also
Closely related terms.
SDLT (Stamp Duty Land Tax)
A tax payable on the purchase of land and property in England and Northern Ireland, calculated on a tiered basis with rates increasing for higher-value transactions.
Gross Development Value
The total market value of a development upon completion, encompassing all units and any commercial elements.
Net Development Value
The gross development value of a completed scheme minus all costs of sale including estate agent fees, legal fees, and marketing expenses.
Further reading
Guides that touch this term.
Guide
The Capital Stack in Property Development: How to Structure Your Funding
A comprehensive guide to understanding and structuring the capital stack in UK property development, from senior debt through mezzanine to equity contributions.
9 min read readReadGuide
Hidden Arrangement Fees in Development Finance: What Lenders Don't Tell You
Arrangement fees in development finance are rarely as straightforward as a single percentage. This guide exposes the hidden layers of fees that lenders charge and shows you how to negotiate effectively.
9 min read readReadGuide
UK Development Finance Market 2026: Rates, Trends and Outlook
A comprehensive overview of the UK development finance market in 2026, covering current interest rates, lender appetite, emerging trends, and what developers should expect over the coming 12 months.
9 min read readRead
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