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Disposal of Property

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Capital gain tax on disposal of property

You may have to pay capital gains tax if you make a profit (gain) when you sell or dispose of a property. Capital gains tax can be complicated, with so many exemptions and reliefs available. In case of sale of property, the reliefs applicable may be Principle Residence Relief (PPR), Letting Relief, Rollover Relief and Gift relief etc. which can significantly reduce the capital gains tax payable.

Selling your main home

If you are selling a property that is your main home and you always lived in that property as your main residence, generally you won’t be liable to make any tax payments if certain other conditions are satisfied.

However, if your property was used as man residence for the part of the ownership period and was vacant or let for other part of the ownership period, you may be liable to pay liable to pay capital gains tax. There are specials rules to calculate capital gains considering the following:

  • Periods of actual occupation
  • Period of deemed occupation as per HMRC rules
  • Periods when the property was let
  • Periods when the property was vacant

This requires detailed analysis of the individual case to calculate the reliefs such as Principal Private Residence Relief (PPR) and letting relief. This will in many cases either significantly reduce your capital gains tax or even eliminate it completely.

Sale of property that is not your main residence

You may have to pay tax if you sell a property that is not your main home, for example, buy-to-let property, business premises, inherited property etc.

How to calculate capital gain on the property?

Generally, your capital gain is the difference between what you paid for your property and the amount you got when you sold it.

You can also deduct the following costs from you gain:

  • Cost of buying e.g. estate agents’ and solicitors’ fees
  • Cost of selling e.g. estate agents’ and solicitors’ fees
  • Cost of improvement works, for example for an extension

If you have recently sold your residential or business property and would like us to help you in relation this, please get in touch.

Why Choose Us
  • Chartered Certified Accountants
    We have a qualified team of Chartered Certified Accountants who can provide you with personalised and reliable tax advice related to the disposal of your property.
  • HMRC Authorised Agent
    We are HMRC authorised agent and can appoint Martax Accountants to deal with your business tax affairs.
  • Landlords Taxes Specialist
    We have an expert team dedicated to dealing with property taxation, including capital gains tax matters related to the disposal of the property.
  • Fixed Fee Services
    We provide fixed fee capital gains tax services – no surprises or hidden charges.
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How we can help

We have a team of capital gains tax specialists who can provide you with relevant and reliable capital gains tax advice to ensure your tax liability is minimised. We will ensure the following to reduce your capital gains tax liability:
  • Whether the disposal of the property is chargeable for capital gains tax purposes
  • Whether any expenditures incurred are deductible against the chargeable gain
  • Is there any capital expenditures incurred which can be claimed against the capital gain
  • Whether any Principle Private Residence (PPR) relief is available to reduce the gain
  • Whether any letting Relief is available to reduce the capital gain on the property
  • Is there any loss available to offset against the capital gain

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