Capital Gains Tax

[Deleted User]

Hello forum members, 
I have just put a property on market for sale.
I understand I need to report capital gains within 30 days of sale. Where do I seek advice? And how do I select who to guide me? I have no idea about tax so what do I need to ask or look out for? Can you please share your previous experience. 

thank you 

theartfullodger

No idea about tax?  So was this rented out?

I've declared and paid CGT twice in past 18 months.  HMRC systems (online) are quite helpful and ask about fees, improvements, etc.

Report and pay in 30 days IIRC.

Buy a book on property taxes: Will save you more in time and £££than it costs to buy & read.

runforlife

If the property is your main home then you shouldn’t have to pay or report any capital gains tax. 

You may have to pay Capital Gains Tax if you make a profit (‘gain’) when you sell (or ‘dispose of’) property that’s not your home, for example

• 
  
• buy-to-let properties
• business premises
• land
• inherited property

There are different rules if you:

• sell your home
• live abroad
• are a company registered abroad

You’ll need to work out your gain to find out whether you need to pay tax.

If you think you’ll have to pay CGT then you should probably get the advice of a tax accountant.

https://www.gov.uk/tax-sell-property

[Deleted User]

runforlife said:

If the property is your main home then you shouldn’t have to pay or report any capital gains tax. 

You may have to pay Capital Gains Tax if you make a profit (‘gain’) when you sell (or ‘dispose of’) property that’s not your home, for example

• 
  
• buy-to-let properties
• business premises
• land
• inherited property

There are different rules if you:

• sell your home
• live abroad
• are a company registered abroad

You’ll need to work out your gain to find out whether you need to pay tax.

If you think you’ll have to pay CGT then you should probably get the advice of a tax accountant.

https://www.gov.uk/tax-sell-property

This was my family home, but have been renting a property elsewhere for the last 9 years. All utility bills are under my name, and I have been living occasionally in the property with my family. The property does not serve a purpose any longer as my family have relocated and my main residence is elsewhere, despite me paying still all the utility bills etc. So with that in mind, do I need to pay capital gains tax?  

[Deleted User]

theartfullodger said:

No idea about tax?  So was this rented out?

I've declared and paid CGT twice in past 18 months.  HMRC systems (online) are quite helpful and ask about fees, improvements, etc.

Report and pay in 30 days IIRC.

Buy a book on property taxes: Will save you more in time and £££than it costs to buy & read.

The issue is that I have not been living continuously in the property for the last 9 years. So even though all utility bills are under my name, and I have lived in the property occasionally, my main residence that I rent is elsewhere.
Do I qualify for residence tax relief? 

runforlife

You may have to. If you have been living there then those periods reduce the CGT liability. Also you have an annual allowance against the total CGT cost which is currently £12300 I think. At the most your liability will be the gain  of the property from 9 years ago to today minus any time living there, minus 9 months (the government kindly give you that) minus your allowance. . There is a specific formula . You should probably invest in a tax accountant for a few hundred pounds. 

macman

So this is in effect a second home, although your primary residence is rented?
All the info you need is online, you just need the figures and valuations to work out your potential gain.
https://www.gov.uk/tax-sell-home

[Deleted User]

macman said:

So this is in effect a second home, although your primary residence is rented?

Correct this has been a second home as I had to relocate with work. 
My primary residence is where my work is based. 

[Deleted User]

runforlife said:

You may have to. If you have been living there then those periods reduce the CGT liability. Also you have an annual allowance against the total CGT cost which is currently £12300 I think. At the most your liability will be the gain  of the property from 9 years ago to today minus any time living there, minus 9 months (the government kindly give you that) minus your allowance. . There is a specific formula . You should probably invest in a tax accountant for a few hundred pounds. 

Any advice on how to choose a tax accountant? Are there accountants who specialise only on property? 

macman

How many months were you living there out of the 108m you owned the property? The liability is not difficult to calculate, you just need to do the paperwork to get the figures together, which you'll need to do anyway, whether you pay someone else to do the calculation or not.
Any  tax accountant should have experience of CGT calculations.

AdrianC

...and "living there" means using it as your main residence, not just staying there for a change of scene...