CONFUSING: 2024 Capital Gains Tax (CGT) Rates when selling residential property

Рет қаралды 11,999

UK Property Tax Accountants

Күн бұрын

Пікірлер: 34

@lkearney7299 3 ай бұрын

Much of property increase is not even profit, it's inflation. That makes the tax a double insult.

@UK-Property-Tax-Accountants 3 ай бұрын

That is a very fair point. The UK did have an indexation allowance but was scrapped 😢

@oddjob4877 5 ай бұрын

Due to tax changes my BTL now lose money - I would like to sell but the high CGT acts as a barrier to me selling my BTL properties. I have owned them for 30 years and the CGT is now higher than the equity left in the properties - this means it would cost me hundreds of thousands of pounds to sell the properties. Admittedly i have regularly remortgaged and converted some of the equity to cash over the years but that was the accepted way to make money out of BTL for many decades. I used to be a Tory voter but the way they have penalised and vilified landlords like myself means that I will never vote Tory again. What an incredible own goal by the tories.

@UK-Property-Tax-Accountants 5 ай бұрын

The issue we have is that the Tories lost their identity and became leaderless back in the 2000s The issue is that all parties are Labour wannabe too party. I fear it will be worse for landlords once Labour get in. The Conservatives are happy to take their pay packets without any pride or fight left

@lkearney7299 3 ай бұрын

They're not a real Conservative party.

@RichardFuller-z5y 3 ай бұрын

yes hows it legal

@UK-Property-Tax-Accountants 3 ай бұрын

Great question 👍

@MARTINA-gc3tq 25 күн бұрын

Wait til it goes to 40% this October……. You'll be screaming for Hunt to come back.

@UK-Property-Tax-Accountants 25 күн бұрын

😂

@alisonalexandratou8723 13 күн бұрын

How much CGT do i have to pay on a £25,000 profit made from sale of property which I have let out since I bought it 6 yrs ago. I'm a non resident, live overseas. Yearly rental income £12/15,000 depending on expenses included. Thank you

@UK-Property-Tax-Accountants 12 күн бұрын

This is not an answer that I can provide on a KZbin form. The reason for that is because you have to take into account your total taxable income, personal allowances and the game at self. This is often a complex calculation. You are better to speak with your accountant to deal with your specific situation.

@alisonalexandratou8723 12 күн бұрын

@@UK-Property-Tax-Accountants ok thank you

@kiranchannar6898 20 күн бұрын

What about CGT on stocks and commodity trading ? Thanks

@UK-Property-Tax-Accountants 20 күн бұрын

They are at the rates of 10% for vais rate taxpayers and 20% for high rate taxpayers 👍

@s.c.9878 5 ай бұрын

It's maddening is what I think!

@UK-Property-Tax-Accountants 5 ай бұрын

I agree with you, 100%

@roberthuntley1090 5 ай бұрын

Agree that CGT is a rip-off, since it doesn't allow for inflation so you can end up paying it on a real terms loss. Off Topic but CGT related - does anyone know if you trigger a CGT event when transferring shares into an ISA? On paper, its shown as a sell by the original investment, followed by a buy by the ISA so might do. Reason for the question is that this year's CGT allowance has been reduced to £3000, so you only need to have made 15% gain over the original price when transferring £20k worth of shares to be at risk of paying CGT. Not allowing for inflation, >15% gain for shares purchased a decade or so ago is probable. I'm unclear if the "same day" and "bed & breakfasting" rules which would normally exclude this sort of task risk apply when two different versions of you (the non-ISA & the ISA) do the buying and selling. Example - I've just transferred £20k into an ISA wrapper, which have grown by approx. £2k since I bought them in 2019 so I'm not at risk yet, but could well be in a few year's time.

@roberthuntley1090 5 ай бұрын

Answering my own question, I've searched on line and you DO trigger a CGT event when transferring shares into an ISA (the only exemptions are things like employee share schemes which have different rules). The tax man sees the transfer as a sell, followed by a buy (since you can only move cash into an ISA) - and if the sale has more than £3k capital gain then CGT will be due. Unless the allowance is raised to something more realistic given cumulative CPI over the last few years I won't be able to transfer the full £20k each year in a three or four year's time.

@UK-Property-Tax-Accountants 5 ай бұрын

I’m delighted to see that you have answered your own question. As I have just seen it myself

@HandyPandy989 2 ай бұрын

Starmer needs to go fast before total Chaos will be the worst !

@UK-Property-Tax-Accountants 2 ай бұрын

Sadly not going to happen for a long time now

@1414141x 5 ай бұрын

I have owned some investment residential properties for over 25 years. My long term plan was to manage them myself and then when retired and relocate, to sell them and buy other investment properties in the new area I had moved to. Then there was taper relief which made any CGT payments would be minor. That went out of the window in one fell swoop. Then CGT was brought in progressively going higher to the 28%. The chunk CGT would take out of the profits would make my buying power for new properties far less. Had they been business premises I could have avoided any CGT liability because i intended to buy new properties. I am now sitting on my properties. I would have been happy to take a hit on a reasonable rate to progress. The government would have got CGT tax plus stamp duty on the new properties I would buy. Now they have neither and they are unlikely to get any tax off me as I will probably put the properties in my will. As for it stimulating the availability of properties for first time buyers or owner occupiers I fail to see any logic in that. I would also argue that there should be a annual relief to take into account of inflation based on RPI.

@UK-Property-Tax-Accountants 5 ай бұрын

I agree wholeheartedly. The government are weak and clueless. The UK is going to get worse and a laughing stock in Europe. Third world anyone? Look at the debt building, broken NHS, ever growing evidence of corruption and safety of UK citizens in Uk housing becoming a passive interest to those in power.

@shanperera1129 8 күн бұрын

Good riddance to the tories . Be careful what you wish for !

@UK-Property-Tax-Accountants 8 күн бұрын

A truer word could not be spoken on both fronts

@OmarAli-jx8nc 2 ай бұрын

The reduction in rate to 24% starts to work in your favour if your profits are higher than £75k. So for example if your profit is £200k, you will pay £5k less tax, if you are higher rate earner. Another tax that benefits the rich to the detriment of the poor.

@UK-Property-Tax-Accountants 2 ай бұрын

Hi, would you show your workings to help us to understand this point a little more?