CGT on Property

What is CGT ?

Capital gains tax (CGT) becomes payable when you sell a property and make money from the sale. The amount you pay depends on your income – basic-rate income tax payers are liable for CGT at 18 per cent, those on higher rates of income tax pay 28 per cent.

You generally won't need to pay the tax when selling your main home. However, you will usually face a CGT bill when selling a buy-to-let property or second home. You may also need to pay CGT if your home is partly used as a business premises, or you lease out part of your property.

From 6 April 2020, CGT will have to be paid within 30 days of the completion date.

Failure to pay on time will result in HMRC imposing interest and potential penalties. This new deadline applies even where no money has changed hands – e.g. when a property is transferred into trust or gifted to a family member.

We would advise our potential clients to seek accountancy advice in advance of their exchange.

Please contact our property team on 01606 74301 and we will be happy to help you.