CGT is tax payable on profits when you sell or dispose of an asset that has increased in value.
HMRC have set out rules for both Non-UK and UK Residents to pay CGT due on properties as well as submitting a CGT return.
For properties sold after 6th April 2020 you must report and pay Capital Gains Tax within 30 days of selling property in the UK.
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Each time a property is sold, have you considered Captial Gains Tax?
This could apply if:
– You've let the property since beginning of ownership, or;
– Used as your main residence but let out before or after your time living there,
– It is a buy-to-let property business,
– It is commercial property,
– It is land, or;
– The property was inherited.
There are certain tax reliefs available in the form of:
– PRR (Private Residence Relief),
– LR (Letting Relief).
No requirement if no taxable gain, this could be due to:
– Prinicipal Private Residence Relief,
– The capital gains tax exemption applies (gains up to £12,300),
– No gain no loss (such as transfers between married couples or civil partnerships),
– Property disposal results in a loss,
– Capital losses were brought forward from previous tax years,
– Losses arisen during the tax year on disposals.
Who are caught by these rules?
– Non-UK Residents,
– UK Resident Taxpayers.
Who are NOT caught by these rules?
– Pension Schemes,
– Other Collective Investment Schemes.