Capital Gains Tax is a tax on the profit when you sell an ‘asset’ that has increased in value. The tax is on the gain, not the whole amount of money you receive.
However, no tax will be payable on your gain if all the profits you have made within each tax year fall within your tax-free allowance.
From the 6th April 2023, the tax free allowance for Capital Gains is to be slashed from £12,300 to just £6,000.
In 2024, the allowance will again be halved to just £3,000!
This is a blow for those who may profit from an asset such as a second home or investment property.
Therefore, for landlords who are looking to sell their rental properties in the upcoming years, it would make sense to sell sooner rather than later.
Whilst we cannot provide financial advice on Capital Gains Tax specifically, please contact our Property Department today for a quote for selling your property.