Capital Gains Tax when selling a house

[@UK-Property-Tax-Accountants]

Use our new free Capital Gains Tax Calculator here: www.optimiseaccountants.co.uk/uk-capital-gains-tax-calculator/

[@UK-Property-Tax-Accountants]

Use our new free Capital Gains Tax Calculator here: www.optimiseaccountants.co.uk/uk-capital-gains-tax-calculator/

[@UK-Property-Tax-Accountants]

Read the article here: www.optimiseaccountants.co.uk/knwbase/how-long-do-i-need-to-live-in-a-house-to-avoid-capital-gains-tax-uk/ download the tax calculator here: www.optimiseaccountants.co.uk/tax-calculators/ Do you have a property/business tax related question? Why not get those questions answered by Louise & Simon every 3rd Monday of the month? Register here: optimiseaccountantsltd.as.me/TaxQA Property Expert Panel KZbin live session, 1st Monday of every month: www.propertyinvestingfoundation.com/property-expert-panel-simon-misiewicz/

[@scotchandstocks]

Just to update a little bit you guys might be able to support or deny. this year it should be a CGT allowance of 6000ish

[@UK-Property-Tax-Accountants]

We have done a couple of videos to update our KZbin subscribers of the change of rates. £6000 capital gains tax exemption is for the 2023 2024 tax year but decreases again to £3000 the following tax year

[@jeffocarroll7848]

How does one nominate your home ? Currently renting and doing a refurb on newly acquired property.

[@UK-Property-Tax-Accountants]

You will have to nominate one property as your primary residence

[@sssfff]

Hi, may I ask if your webpages be changed to a thicker regular font? The thin lines of the font on your webpages makes it quite difficult to read. Thanks!

[@UK-Property-Tax-Accountants]

Your laptop should allow you to change the font size under accessibility if that helps?

[@thepuddlejumper500]

If you have two properties can you change your main residence to mitigate cgt and how long would you need to live in that property to enable your annual allowance to be applied?

[@UK-Property-Tax-Accountants]

Everyone gets a CGT annual exemption. There is no time period to get this allowance. PRR is the period in which you live in the property plus an additional nine months. This helps you mitigate to capital gains tax. The remaining period of ownership will be subject to CGT as normal

[@x941]

Great video. I have a question: regarding you spread sheet calculator on your website; you say to only use this PRIOR to selling the property. I sold a property last year and neglected to pay CGT at the time, so I presume I'll have to pay a penalty. Can I still use your spread sheet calculator to make the basic calculations?

[@UK-Property-Tax-Accountants]

Yes of course. It just won’t provide penalties or interest

[@x941]

Thanks 🙏

[@UK-Property-Tax-Accountants]

Always welcome 🙏

[@eazybean6160]

Great informative video. One question. If there is a GCT liability on selling rental property (property worth £250k, chargeable gain of £50K) but you then use the proceeds of house sale to buy another rental property (buy new property £350k), does this impact the chargeable gain at all?

[@UK-Property-Tax-Accountants]

Please see my video reply

[@angelachu4379]

Hello Simon and Louise. Thank you for sharing. My understanding Scotland taxation is slightly different. What about selling my HK (HK) property capital tax once I land in Scotland, Is it also 18-28%? Thanks!

[@UK-Property-Tax-Accountants]

Same rules will apply for CGT

[@fairysox221]

We have owned our home for 22 years and lived in it the whole time, Obviously it has increased in value massively since we bought it... would we pay capital gains tax if we sold it.

[@UK-Property-Tax-Accountants]

I have some very good news for you. There will be no capital gains tax as it is your main home and you have always lived in at

[@fairysox221]

@@UK-Property-Tax-Accountants That's a relief, we have spent most of our savings improving it over the years and between that and inflation we wouldn't even be able to afford to buy it ourselves on today's property prices... Thank you for the informative video and a big thank you for clarifying our situation as we we're a little worried !

[@UK-Property-Tax-Accountants]

You are very welcome.

[@fairysox221]

@@UK-Property-Tax-Accountants Subscribed and liked :)

[@kennyiklei]

great video. thank you. what if I am away from the country but the property is being occupied by my children as they study or work in the region of the property?

[@UK-Property-Tax-Accountants]

Unless you give the asset to your children it will remain to be your property

[@kennyiklei]

@@UK-Property-Tax-Accountants thanks

[@UK-Property-Tax-Accountants]

You are very welcome

[@jcs3330]

Hi, my main and only residence home is in Spain (I hold a residencia for 2.5 years), which I am selling to finance a new main residence in the UK. Will I have to pay Spanish CGT, has I will be paying uk 'Stamp Duty' for my new UK residence?

[@UK-Property-Tax-Accountants]

I think I may have just responded to this question on the other video

[@steveinstamford]

Very interesting video and thanks.Is there CGT to be paid if I sell my main residence to my ltd company?

[@UK-Property-Tax-Accountants]

Not if you have always lived in the property but you will pay SDLT

[@MrandMrsDIY]

Hi There, just tried to download your CGT calculator and the page wasn't found, can you please see due one, thank you

[@UK-Property-Tax-Accountants]

We decided to disband the spreadsheets as we move to online tax calculators that will be free in due course.

[@vp2272]

Great video. I would like to gift my property over to my son. I am prepared to pay the capital gains. I would like to gift 20% of the property bit by bit over five consecutive tax years, is this something that I can do.

[@UK-Property-Tax-Accountants]

Yes you can but check with your mortgage lender first

[@vp2272]

@@UK-Property-Tax-Accountants Thank you for that. The property does not have a mortgage. I was more wandering as to how HMRC would view these part disposals. I would like to gift house over different tax years in parts (i.e. 20% each year over 5 years) to utilise the CG annual exemption. Could HMRC scrutinise this approach and deem it as one transaction?

[@UK-Property-Tax-Accountants]

They could. As long as you have the evidence to prove that the transactions are below the CGT, there is nothing they can do about it

[@joannaj4038]

Hi Louise and Simon, thank you very much for this video- very informative, as usual. Is there a minimum period you need to live in the property to claim PPR relief? For example, can I buy a property for a residential purpose, flip it and use the proceeds to buy another one, flip it again and so on and so never pay CGT? Are there any other considerations that HMRC may take into account in such scenario?

[@UK-Property-Tax-Accountants]

Unfortunately caselaw is qualitative and not quantitative As search HMRC could make an enquiry to your capital gains tax return all land registry details when the property is sold and ask some difficult questions We have seen people that have sold two properties in quick succession doing exactly what you said even though they’ve lived in the property for more than two years and still made the person pay capital gains tax. Therefore I cannot say how long you need to be in a property because it could be different for every case according to HMRC

[@joannaj4038]

@@UK-Property-Tax-Accountants Thank you again, Simon.

[@UK-Property-Tax-Accountants]

Always welcome

[@KT-sr3ko]

Hi Louise and Simon and thanks for your advice. I've tried using your CGT calculator and it's giving us an allowance each as husband & wife for PRR. Neither of us has ever lived in the property as it's just a BtL. I sold 2 other properties about 3 years ago and paid small amounts of CGT but accountants never told me I could claim this. Is this right? I think I may need to use your services as I'm pretty local to you.

[@UK-Property-Tax-Accountants]

You should always be allowed an annual exemption for capital gains tax purposes which is £12,300.

[@UK-Property-Tax-Accountants]

www.optimiseaccountants.co.uk/

[@karencrawford5102]

I am a director of a ltd company but do a self assessment for a few personal owned properties. My accountant is invoicing for my personal accountancy with itemised costs for self assessment £150 and £250 for CGT workings and submission but is only putting down £75 on my self assessment for allowable accountancy fees. A small point but this seems wrong to me?

[@UK-Property-Tax-Accountants]

I would agree but please do check with them

[@UK-Property-Tax-Accountants]

Additionally, who does your bookkeeping?

[@karencrawford5102]

@@UK-Property-Tax-Accountants I use quickbooks and my accountant is McLintocks a small firm in the north west

[@karencrawford5102]

@@UK-Property-Tax-Accountants I have checked with them but they are adamant the CGT accountancy fee is not an allowable expense only the fee for self assessment, even this they are only claiming half and they say it’s because we are directors of ltd business?

[@racoore7920]

So all that free advice??? And 4.5 k views?? 😂😂😂😂😂

[@UK-Property-Tax-Accountants]

I am glad you enjoyed it though

[@jcs3330]

Hi, my main and only residence home is in Spain (I hold a residencia for 2.5 years), which I am selling to finance a new main residence in the UK. Will I have to pay Spanish CGT, has I will be paying uk 'Stamp Duty' for my new UK residence?

[@UK-Property-Tax-Accountants]

You will need to pay stamp duty land tax whenever you are buying a UK property investment. Capital gains tax is normally a tax you pay when you sell a property, you will avoid this tax if you are selling your main home

[@jcs3330]

Hi, my main and only residence home is in Spain (I hold a residencia for 2.5 years), which I am selling to finance a new main residence in the UK. Will I have to pay Spanish CGT, has I will be paying uk 'Stamp Duty' for my new UK residence?

[@UK-Property-Tax-Accountants]

When a taxpayer sells a home in Spain, they are obliged to pay the infamous municipal capital gains tax (called the plusvalía municipal in Spanish) unless they have incurred losses from the transfer.

[@UK-Property-Tax-Accountants]

You will need to pay stamp duty land tax on the property that you buy in the UK in addition to any tax that you pay in Spain