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

[@oddjob4877]

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]

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]

They're not a real Conservative party.

[@lkearney7299]

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

[@UK-Property-Tax-Accountants]

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

[@s.c.9878]

It's maddening is what I think!

[@UK-Property-Tax-Accountants]

I agree with you, 100%

[@kevin-e5h5t]

In Australia, we have no Capital Gains Tax on one's primary residential housing. One gets 6 months to change from old to new.

[@UK-Property-Tax-Accountants]

That is a really great share, thank you ever so much for that. I know that it will be useful for me in the future.

[@RichardFuller-z5y]

yes hows it legal

[@UK-Property-Tax-Accountants]

Great question 👍

[@slinkydonkey]

I am considering selling my house which was rented out from 2021 to 2023 but I had lived in it before that from 2014 to 2020 I spend about 40k if not 50k doing it up..what evidence does HMRC need as I don't have 10 year old receipts..

[@UK-Property-Tax-Accountants]

They could ask for receipts so you are best not to put these in without locating them.

[@iainstewart5866]

If I sell a buy to let property at a loss how long can I carry over the at loss to offset against a future gain? Thanks

[@UK-Property-Tax-Accountants]

Indefinitely, which is good news

[@june-mariehamilton5455]

@@UK-Property-Tax-Accountantsyes - the ONLY good news. Inflation is the incentive killer, I would not do it again.

[@francescabennetts7124]

If i sell an acre of land, will i still be liable to pay capital gains tax if I sell for £20,000 or under? Also, with 3 arcres, can I boundry into 1 acres and sell individually to avoid the high CGT?

[@UK-Property-Tax-Accountants]

You will need to get some tax advice on this as the devil is on the detail

[@francescabennetts7124]

@UK-Property-Tax-Accountants yes, thank you! I've got to book an appointment with a financial advisor.

[@Newmusicreview]

Hi - we own rental property within a Ltd Co. If we sell today do we still use the Indexation relief actor frozen from 2017 ?

[@UK-Property-Tax-Accountants]

No, UK companies can no longer claim indexation allowance on capital gains. The allowance was fully abolished for disposals on or after 1 January 2018. Before this, companies could adjust the original cost of an asset to account for inflation, reducing the capital gains tax liability. However, since the removal of indexation, companies now pay corporation tax on the full gain without this adjustment.

[@Newmusicreview]

@@UK-Property-Tax-Accountants Mmm...HMRC site seems to indicate that it can still be applied but only from the frozen factor at Dec 2017 ?....

[@alisonalexandratou8723]

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]

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]

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

[@OmarAli-jx8nc]

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]

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

[@kiranchannar6898]

What about CGT on stocks and commodity trading ? Thanks

[@UK-Property-Tax-Accountants]

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

[@roberthuntley1090]

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]

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]

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

[@MARTINA-gc3tq]

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

[@UK-Property-Tax-Accountants]

😂

[@shanperera1129]

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

[@UK-Property-Tax-Accountants]

A truer word could not be spoken on both fronts