Capital Gains Tax

Capital Gains Tax Capital Gains Tax issues for Landlords What is Capital Gains Tax? Capital Gains Tax (CGT) is payable when you sell relevant assets such as shares or property and make a profit in excess of the annual exemption (currently £11,700 for... More

Capital Gains Tax Capital Gains Tax issues for Landlords What is Capital Gains Tax? Capital Gains Tax (CGT) is payable when you sell relevant assets such as shares or property and make a profit in excess of the annual exemption (currently £11,700 for individuals, £5,850 for trustees). CGT is broadly payable on the difference between the allowable costs of the property and what you sold it for. Do landlords have to report or pay CGT? Yes. CGT is payable if you make a gain in excess of the annual exempt amount. You should take into account other sales during the year when determining if this is the case. Regardless of whether a chargeable gain is made, disposals are reportable to HMRC where proceeds exceed 4 times the annual exempt amount. How much tax will I have to pay? It depends. Deductions that may be available when you sell an investment property could typically include: Legal fees for the purchase and sale Legal fees incurred in establishing or preserving title, such as boundary d Less