I want to sell a property I bought as an investment. Will I have to pay capital gains tax? And if so, how much?
Capital Gains Tax (CGT) is a tax on the profit when you sell something that’s increased in value, it’s the gain you make that’s taxed, not the amount of money you receive. If the property you are selling is your main residence then no, you will not need to pay capital gains tax (CGT) as you will automatically get a tax relief called Private Residence Relief. However, if the property is let out or not your main residence then yes it is likely you will have to pay CGT. The calculation of the gain made will take into account costs incurred in buying, selling and improving your home which will reduce your gain along with many other factors including if you have ever lived in the property. It is recommended to speak with a tax advisor to accurately assess any liability for CGT.
3rd July 2015
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