CAPITAL GAINS TAXES
If you own a property that isn’t your primary residence and are planning to sell it, one issue that you will need to consider is Capital Gains Taxes. No-one likes to be surprised with an unexpected tax bill, so make sure that you are aware of any tax liability prior to selling a property, and factor the tax in to any estimated profit you are hoping to see following the sale.
Capital Gains Tax refers to tax applied to the profit you make when you sell an asset, like a property, that has increased in value. The rate of Capital Gains Tax applied to the profit from the sale of a property (that isn’t your primary residence) can be up to 28% tax, so it is well worth working out whether or not you will be affected by Capital Gains Tax (and if so, by how much) prior to selling an asset in order to determine what your tax liability may be. The UK Government website provides some useful information about Capital Gains Tax on its website: Capital Gains Taxes, including information about tax allowances, principal private residence relief, working out if you need to pay Capital Gains Tax, and if so – how you can pay it.
As with all financial issues, if you are unsure about your tax obligations, there are a number of people that you can speak to, from the Citizens Advice Bureau to Independent Financial Advisors. You can also call HMRC on 0300 200 3300 to speak to one of their own advisors directly if you have any general enquiries about Capital Gains Tax.