Capital gains tax is a complicated issue and one particular area of complexity is in relation to the sale of property. A major concern is whether there will be any capital gains tax triggered by a sale.

Richard Whitelock, head of private clients at York and Leeds-based accountancy firm Garbutt + Elliott, advises that the amount of tax to pay on property sales depends on more than how much money has been made.

“For example, capital gains tax on a residential rental property bought ten years ago for £200,000 and that is now worth £500,000 can vary.

“If the property was jointly owned by a couple who lived in it after buying it, and had maximum availability of tax bands and allowances, then the resulting capital gain tax bill might be around £11,000. But, in a less favourable situation the maximum capital gains tax bill could be up to £84,000.

“As the contrasting results and complexities of this example illustrate, the key is to ensure that all the tax reliefs and allowances have been considered and claimed before making a property sale.”

If you’re thinking about making a property sale, and want to know where you would stand in terms of capital gains tax please contact:

Richard Whitelock

01904 464151