Testimonials
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The property market is tricky at the moment to say the least so congratulations on selling your property! But, are you aware of what you need to report to the taxman and the deadlines you need to pay your Capital Gains tax by?
If you have gained a profit from the sale of your property (which isn’t your home) then this must be reported to HMRC.
If the completion date of the sale of the property was on or after 27th October 2021 then you need to report and pay the tax owed within 60 days of completion.
If the completion date was between 6th April 2020 and 26th October 2021 then this should have been reported within 30 days of the completion date.
Working out your gain
In order to work out what you’ve gained from the sale of the property you’ll need to subtract the amount you bought the property for from the amount you sold the property for. This will give you the value of profit (gain) which you’ve made. If this amount is under the threshold for your personal allowance then you won’t have to pay Capital Gains Tax. However if it exceeds the amount you will need to report and pay tax on the profit you have made.
Costs
Any fees which you have incurred to sell the property, such as solicitors and estate agent fees can be deducted from your profit. Any costs of improvement work such as renovating or extending the property can be deducted but not general maintenance costs such as decorating.
Relief
If the property you sold used to be your home, was occupied by a dependent relative or is a business asset then you may get tax relief. This may reduce or delay the amount you need to pay.
You can work out what you need to pay by using HMRC’s Capital Gains Tax calculator.
