How To Avoid Capital Gains Tax In 2024

[@propertyaccelerator]

Read MORE about it on our blog: property-accelerator.co.uk/how-to-avoid-capital-gains-tax/

[@bobgriffin316]

If you make it your primary residence I believe you can only reduce the tax by the proportion of time you live there divided by the time you owned the property. So if you live there for 1 year and you owned it for 10 years you can only reduce your tax by 1/10 = 10% of the bill. If the tax is 28% then you will reduce your tax bill by 2.8% to 25.2%. That is not worth bothering with. I think that if the profit on your property is £100,000 and you earned £49,000 at your job, you will pay 28% on almost all the amount even though you were only paying 20% tax on your job. Once the total of your job plus your profit goes above £50,000 then you pay 28% on that money over £50,000. That is how tax bands work.

[@CiscoPhipse]

If you make a BTL your primary residence before selling, don't you have to change the mortgage to a residential product? Is there a minimum length of time I have to be there? What do I do with my main house that I'm moving out of? Change that to a BTL?

[@1414141x]

If you have liability on a large gain on sale of a property you should use a specialist in taxation on CGT. It is highly complex and worth the investment. Don't just try and work it out yourself.

[@propertyaccelerator]

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[@TheBobster1969]

I made 25% on my gold investment over the last 12 months. On 100k of gold it was the same profit as renting out 5 100k Flats with no income tax, no stress.

[@propertyaccelerator]

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[@jsydev]

What if you want to move a house into a LTD. Will they charge CGT, and if so.. Can you sell it to your LTD for £10 or the price you paid for it.

[@propertyaccelerator]

No you have to sell for fair market value and they do check that.

[@jsydev]

Not good

[@queensberryrulez5306]

You need to do a bit more reading on the primary residence/btl CGT liability mate this is wrong or at least came across wrong. Could cost some people if they take at face value.

[@propertyaccelerator]

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[@58roofer]

Great video. If I make a buy to let property my main residence, how long do I have to stay in it before I can sell it.

[@propertyaccelerator]

I would speak to an accountant they will give you the best answers. Call a local one I am sure they will help.

[@zxpdedandelion590]

any time length needed to become the primary residence? X months or years?

[@propertyaccelerator]

I would advise to speak to a tax specialist to get more details.

[@stephenwhite5057]

I believe CGT allowance is accumulative for 2 years. Great video, I've subscribed, I'm hooked.

[@stevewatt9477]

Primary residence portion will only run from the date it is announced.

[@propertyaccelerator]

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[@CheenaSingh]

Isn't the higher rate of CGT on property now 24% and not 28%

[@simonw1421]

I have a London property purchased in 2015 that we are most likely going to sell for a loss. Can we in this circumstance claim the stamp duty etc. to offset other tax’s?

[@propertyaccelerator]

I would speak to an accountant to see what they can do for you.

[@londonman8688]

does HRMC check renovation costs ?

[@propertyaccelerator]

You declare it on your tax return so yes, and if you got an inspection they would go detailed.

[@Asim8113]

Much needed video. Looking forward. Thanks

[@propertyaccelerator]

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[@davidgoodwin6731]

You can’t just move in and avoid capital gains … you have to pay for all gains during the time you did not live there..

[@kellywalker4494]

Yep, I was about to say this. There’s no way the government would leave open a loophole like this. It’s a bit worrying that he’s giving out such blatantly wrong advice. Lesson is don’t take tax advice from KZbin.

[@a.i.2418]

I think CGT is only due once you sold the property. So if you moved in and live in it, you don’t need to pay CGT until you sold the property. What do u think?

[@Parker-q9p]

@@a.i.2418 I think this is correct, you won't pay any tax until said property is sold.

[@michaeloleary4071]

If you make it your primary residence i.e live in it for 2 years or more, I don't think you would pay CGT.

[@userfile007]

Wouldn't you have to pay CGT for the period when you rented it out?​@michaeloleary4071

[@johnporcella2375]

It might be worth looking into EISs and SEISs to write-off some CGT and/or defer it. Advice needed for this as very, very risky!

[@propertyaccelerator]

Good tip!

[@stevewatt9477]

Gifting is a disposal based on market value and there will be a gain taxable for the period on non-primary residence.

[@propertyaccelerator]

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[@cjam9201]

Myself and 4 others have been left a property worth 65k. Im executor. Will we pay CGT once its sold?

[@jilalazemi7373]

If you are a landlord but you are not a UK resident ? And UK does not give me a visa but I made a mistake and bought a property in London? My flat is in market for sale currently, if my flat is sold will I have to pay for capital gain? When I am not a resident?

[@propertyaccelerator]

I am not sure on that I would speak to a tax specialist.

[@SlackHoffman]

How does it work in the UK 🇬🇧 if someone rents out their only residence? 😎 Great Video James ✊💙

[@propertyaccelerator]

Im not sure on that one buddy, I guess it depends on where they move to and what the tax rules are between countries.

[@SlackHoffman]

@@propertyaccelerator cheers 🍻 James 💪

[@Sirtomalot-c5s]

They closed this loophole some years ago, CGT is payable. If you don’t want to pay CGT……Don’t sell it, or if you have the misfortune of getting a terminal illness, sell the property and go and have the time of your life with the bit of life you have left with the money you’ve made out of your investment, the inland revenue haven’t managed to bring anyone back from the dead to pay a tax bill!

[@propertyaccelerator]

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[@TheBobster1969]

GREAT VIDEO TODAY.

[@propertyaccelerator]

Thank you!

[@andywhitfield79]

CGT on property is 24% not 28% for HRTP

[@CiscoPhipse]

I was thinking the same thing.

[@graemejones9707]

Not for long, the new scum in power are about to raise it to 40%+

[@videogenie1236]

I ❤️ thus video ss it it very relevant to me. However, my wife does not live in the UK. Can I still claim her allowances? How long must you live in the property to make tax free as my primary residence?

[@MyYouTube-z9t]

A lot here is incorrect regarding primary residence. I too am interested if allowances could be claimed for a non uk wife, would it mean gifting her 50% of the property? not sure that the legal fees would be worth it to save the now only 3000gbp gct exempt amount.

[@propertyaccelerator]

I would speak to an accountant.

[@mattanderson6672]

Thank you Sir!!

[@propertyaccelerator]

Most welcome!

[@TheBobster1969]

Good advice...great video.

[@propertyaccelerator]

Thanks for watching!

[@andrewdavidson6286]

Thank you

[@propertyaccelerator]

You're welcome

[@JamesKerr-z4o]

Very interesting, thank you

[@propertyaccelerator]

Glad you enjoyed it

[@MrAlb3rtazzo]

most of what he said is wrong and it will lead you together fined by hmrc

[@JamesKerr-z4o]

@@MrAlb3rtazzo ok I. Will tread carefully and research more

[@ef7480]

maybe you've missed the fact that you would have to look at the mortgage contract terms as a buy to let mortgage does not usually allow you to use that property as a primary residence so you would not simply just be able to move back in.

[@propertyaccelerator]

If you speak with lender most will be happy for you to move in and switch mortgage type.

[@ef7480]

@@propertyaccelerator 👍

[@adamhutchinson7898]

Refurbishment costs can be deducted from your capital gains but not if you have used it as against your income tax bill already (according to my accountant).

[@propertyaccelerator]

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[@noizymoney7067]

As per my understanding, capital gains are added to the taxable income. If the combined amount is within basic rate, only then you pay 18% else 24% So for the 100k profit example, we will end up paying higher rate 24%

[@propertyaccelerator]

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[@1414141x]

It is not that simple. Get expert advice if your gain is going to be over 50 K. Otherwise you will probably pay more tax than you need to.

[@SoledadSolary]

❤ thank you. Now I know.

[@propertyaccelerator]

You’re welcome 😊

[@pardipdev6803]

if you gift to your kids and you are still living in it ,you have to pay your kids the market rent -otherwise its a Gift With Reservation and still liabel for IHT(the 7 year thing is then out of the window)

[@pardipdev6803]

how long do you need to live in the BTL before it becomes your primary residence in terms of paying no CGT once sold i used to think it was 3 years .......but i think my accountant said something about -the time it was a BTL before- still having some say in the matter

[@jaysterling26]

I think it's 2 (?) , although I don't know if that's cumulative or consecutive years ( I bet 'they'll ' change to the later if it's the former).

[@ianstrong8395]

Just pay the CGT and be glad the government caused the value of the property to increase.

[@propertyaccelerator]

But the Government did not increase the value inflation did.

[@ianstrong8395]

@@propertyaccelerator I beg to differ, Inflation is caused by an increase in the money supply. Fiat currency my friend.

[@stevewatt9477]

It's actually 24% higher rate

[@propertyaccelerator]

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[@TheBobster1969]

Gold better investment than protperty over the last 20 years.

[@celiahall6168]

I do both, diverse investments

[@propertyaccelerator]

I know people who do well in gold, I live off my rent roll so prefer that.

[@deboraleggerini5729]

Greå† tips! Thanks for that!

[@propertyaccelerator]

Any time!

[@spencebespokedreams]

I really need that £100k step by step into property

[@propertyaccelerator]

Check out this - property-accelerator.co.uk/fundamentals-of-property-investing/

[@bob1234881]

Reduce or minimise. 😂 P.s. stock low cost index funds mostly in the S&P 500. SPDR 0.03% cost!

[@propertyaccelerator]

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[@martinhammett8121]

Is tax avoidance legal ?

[@ef7480]

Yes it is. Tax evasion isn't.

[@propertyaccelerator]

Avoidance yes

[@MARTINA-gc3tq]

Best way is to become a Labour MP and pretend you still live in the house.

[@propertyaccelerator]

😂

[@TheBobster1969]

Married....means you own 50% of the property.

[@propertyaccelerator]

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[@adamhutchinson7898]

If you transfer to your partner you will have to pay stamp duty.

[@propertyaccelerator]

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[@RKing-z2v]

🏆🏆🏆

[@propertyaccelerator]

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[@jamesagerholm2034]

Labour nearly certainly will change/increase capital gains tax.

[@propertyaccelerator]

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[@jasonpatterson365]

There is some mis information here. If you move back into your btl property, you will still have some capital gains tax to pay for the time that you live or have lived there.

[@propertyaccelerator]

But you will save Capital Gains for the time you live there reducing your bill.

[@jasonpatterson365]

@@propertyaccelerator yes for a proportion of it.

[@TheBobster1969]

Never get Married if you are a millionaire and thry are not.

[@propertyaccelerator]

😬

[@annthomas3930]

Really helpful thank you

[@propertyaccelerator]

Glad to hear it!