Sell My Property

9 Responses to “Do i have to pay capital gains ?”

1. David H, on March 5th, 2010 at 10:40 am Said:

   It all depends how much clear profit you are going to make. Technically if you make over £7500 then you could be liable to CGT (Capital Gains Tax). An option may be to rent it out although again you have to declare anything over about £3500 a year from rental income. Chl]It all depends how much clear profit you are going to make. Technically if you make over £7500 then you could be liable to CGT (Capital Gains Tax). An option may be to rent it out although again you have to declare anything over about £3500 a year from rental income. Check with]

2. amsterdam, on March 6th, 2010 at 6:15 am Said:

   Unless it is your residence, you will have to pay CGT whenever you sell it, time of ownership does not enter into it.

   If it is your residence, you don’t have to pay CGT.

3. edward a, on March 7th, 2010 at 2:14 am Said:

   If its your only house theres no tax to pay, sell as soon as you like.if its not there is capital gains tax pay,best to see an accountant for advise.

4. Jah, on March 8th, 2010 at 1:02 pm Said:

   You would pay Capital Gains no matter how long you held the property if the gain was more than £9,200. The longer you hold an asset the more taper relief you would get which in turn would reduce the amount of gain.
   EG sell asset before 1 year – 100% of the gain is chargeable
   Hold asset for 1 full year – 50% of gain is chargeable
   Hold asset for 2 full years or longer – 25% of gain is chargeable.

   If this the above was your dwelling house then there would be no CGT

5. JOCK, on March 11th, 2010 at 11:39 pm Said:

   If this is going to be your main residence while you upgrade it in order to increase the value, then you will not have to pay capital gains tax on the profit.

   However, if you already own a property then regardless of how long you own the new property, the profit will be subjected to capital gains tax.

   So if this is what you are doing, make sure you keep receipts for any expenses as the capital gains tax rate is 20 – 40% (depending on your income) of the profits above the £9200 capital gains allowance.

   It is a bit of a mine field, so definetly do more investigation before you start. Have a read of the link below, it shouldl]If this is going to be your main residence while you upgrade it in order to increase the value, then you will not have to pay capital gains tax on the profit.

   However, if you already own a property then regardless of how long you own the new property, the profit will be subjected to capital gains tax.

   So if this is what you are doing, make sure you keep receipts for any expenses as the capital gains tax rate is 20 – 40% (depending on your income) of the profits above the £9200 capital gains allowance.

   It is a bit of a mine field, so definetly do more investigation before you start. Have a read of the link below, it should help.
   ]

6. vera-ann, on March 14th, 2010 at 6:58 am Said:

   You will have to pay CGT unless the property is your main private residence. Each individual has a CGT allowance of £8800 per year this is the level of gain you are allowed to make before being charged tax.
   The longer you hold onto the asset the lower percentage chargable.(This is called Taper-relief and works as folows)

   Number of years held Percentage of gain chargable

   0 100
   1 100
   2 100
   3 95
   4 90
   5 85
   6 80
   7 75
   8 70
   9 65
   10+ 60

   E.G Nigel bought a house in Feb 2002 for £100000 and sold it in March 2007 for £180000.

   The gain is £80,000, this can be reduced using taper relief to 85% as the asset has been held for 5 full years giving a figure of £68,000

   This can be further reduced by the annual exemption amount of £8800 leaving a taxable amount of £59,200

   This amount of £59,200 is treated as an addition to Nigel’s income for 2007/08. Nigel’s income up to £33300 will be charged at 20% and anything above this at the higher rate of 40%

   So if Nigel’s salary is £28300, £5000 of his gain will be charged at 20% and the remaining £54200 at 40%

   So he will pay 20% of £5000 = £1000
   and 40% of £54200 = £21680 in total £22680 of his £80,000 profit.

   I am no expert however so you should seek advice from a tax specialist.

7. One step down from God, on March 16th, 2010 at 1:53 am Said:

   Firstly, what you intend to do is not liable to CGT.
   You are intending to make a profit, and therefor you are trading. The profit will be chargeable to Schedule D tax and Class 4 NIC.
   You may get away with it initially, but some people have been caught (mainly jobbing builders and DIY builders) even where they have been trading with a sole main residence.
   Be warned.

8. ITIL Consultant, on March 16th, 2010 at 6:20 pm Said:

   Capital Gains Tax ONLY applies to a property if it HAS NOT been your main residence for a minimum of six months.

   You need to purchase the property, live in it for six months, and then sell it.

   This is the only way to avoid paying CGT.

9. jescikka, on March 19th, 2010 at 2:22 am Said:

   unfortunately not. You will have to pay capital gains tax as you are turning over a quick profit and the government wants its share