Capital Gains tax on property. The April 2015 changes have in some ways made CGT advice more complex. We can help you with advice on property sales and tax
If you sell a property, you might have to pay tax. This tax is called capital gains tax. The amount you might have to pay will depend on the amount of profit you make.
If the property you are considering selling is your main residence then you would normally be entitled to “Principle private residence relief”. This relief normally allows you to you to sell your home without incurring capital gains tax (CGT).
Partial relief to capital Gains Tax
Properties subject to CGT
Some types of properties that might be subject to capital gains:
- Investment property
- Buy to let
- A second home
- Business premises
- Land, for example agricultural land
Calculating Capital Gains Tax
The Government has a Capital Gains Tax Calculator in the .Gov.UK website. We have found this useful for clients. This might give a rough guide to the possible CGT you might have to pay. IT won’t deal with complex capital gains tax calculations and we would therefore always recommend you speak to an appropriately qualified adviser and if necessary seek professional advice.
Tax payers also need to be aware if they sell any other assets or investments that might be subject to CGT in the same tax year and the profits will be amalgamated together. Assets that are jointly owned any profits need to be split between the owners on an appropriate basis.