Selling property: tax implications
May 25th, 2011 § Leave a Comment
If you sell a property that is not your main home, you will normally have a chargeable gain if your property is worth more than you paid for it when you dispose of it. However, nearly everyone who is liable to Capital Gains Tax is entitled to a tax free allowance, the Annual Exempt Amount: £10,100 in 2010-11, £10,600 in 2011-12.
When working out the chargeable gain, some of the costs of buying, improving the property and selling can be deducted.
Rates for Capital Gains Tax:
2010-11 and 2011-12: Up to 22 June 2010, capital gains tax was charged at a flat rate of 18%. After that date, the rates for individuals are 18 and 28%, depending on the total amount of the individual’s taxable income.
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