This month we are focusing on: Inheritance and Property Tax
And this week are looking at: Tax on Property – Capital Gains Tax (CGT)
Capital gains tax (CGT) is payable when you sell an asset that has increased in value since you bought it. The rate varies based on a number of factors, such as your income and size of gain – for property this would include:-
Buy to Let Properties
Business Premises
Land
Inherited Property
Usually, when you sell your main home (or only home) you don’t have to pay any CGT. However, there are some circumstances when you may have to pay some. For example:
• The home includes a lot of land/additional buildings (1/2 hectare or more)
• You’ve sub-let part of it (but having one lodger doesn’t count)
• Part of your home is exclusively business premises
You only have to pay CGT on gains that exceed your annual allowance. Unless you are a property developer and this is your trade
If you know anyone that needs help and advice with capital gains tax please ask them to contact Avanti, (08000) 388 799