CGT Personal Let (not Commercial)
You have an investment property that you have decided to sell. What do you need to be aware of for the tax.
1. You have a personal allowance (currently £11300) that reduces your profit. If the property is owned jointly you can both use your allowances
2. You will pay tax at (currently 18 or 28%) its known as a top slice tax, so it is looked at after all other income you receive
3. You can deduct costs eg estate agent fees purchase and sale / Stamp duty on purchase etc.
4. This is the time you deduct any capital improvements you made (not repairs)
5. Unless you have a particularly large garden over .5 hectares. You don’t pay tax when you sell your ‘main’ residence – this has to be evidenced with paperwork, proof, election with HMRC
6. There are other complex reliefs available often also.
Having the help from an accountant to complete your property supplement in the tax return can save you a lot of money with the experience and knowledge, especially with changing rules every year.
If you know someone in this position please do give us a call.
Disclaimer:- The information contained herein is given by way of general guidance only and no action should be taken solely on the basis of the information contained herein. The Avanti Group (UK) Ltd will be pleased to provide further guidance on the issues, and how they might affect you. No liability is accepted by the firm for any action taken without seeking appropriate professional advice.