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Capital Gains Tax on sale of property - which tax year?
SonnyH
Posts: 26 Forumite
Hi,
I'm planning on selling a property by auction in late March 2024, and it will have a CGT liability. I'd like to confirm which tax year the liability will be for.
The auction contracts will exchange on the day of the auction, and will be binding. But, completion will take place 28 days later, taking it into the next tax year.
Does HMRC allow me to place the gain in the 2023-2024 tax year based on the binding contract, or do I need to place it in 2024-2025?
Hope this is clear!
Thanks!
I'm planning on selling a property by auction in late March 2024, and it will have a CGT liability. I'd like to confirm which tax year the liability will be for.
The auction contracts will exchange on the day of the auction, and will be binding. But, completion will take place 28 days later, taking it into the next tax year.
Does HMRC allow me to place the gain in the 2023-2024 tax year based on the binding contract, or do I need to place it in 2024-2025?
Hope this is clear!
Thanks!
0
Comments
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https://community.hmrc.gov.uk/customerforums/cgt/110e620a-87c9-ed11-9ac4-00155d9771aa#:~:text=You are correct in stating,when the asset is conveyed.
You are correct in stating that, if a disposal is made under an unconditional contract, the date of disposal for capital gains purposes will be the date on which the contract is made, or exchanged. It is not the later date when the asset is conveyed.
0
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