SELLING YOUR PROPERTY

Up to and including the year ended 5 April 2008, any gain made on the sale of your property could be reduced in many ways, including:-

• Indexation Allowance - Only available for property owned before April 1998, it was intended to remove any gain arising purely as a result of inflation.
• Taper Relief - The successor to Indexation Allowance. A complex area, but in its simplest terms, depends on the number of years for which the property has been owned and whether it could be classed as a 'business asset'
• The Annual Exemption
• Any 'capital' expenditure incurred during ownership
• Private Residence Relief
• Residential Lettings Relief

From 6 April 2008, both Indexation Allowance and Taper Relief have been abolished for individual taxpayers. (Indexation Allowance remains available to companies).  There is now a single rate of Capital Gains Tax of 18% which will apply to personal gains made by individuals, trustees and personal representatives.

The disposal of business assets may qualify for Entrepreneurs Relief on gains of up to £1 million. Please contact us for more details.  

Foreign Property

Despite what some articles would have you believe, the fact that your property is overseas does NOT necessarily mean that any gain (or income for that matter) is exempt from UK Taxes. Rather, it is your personal residence and domicile situation which will determine if the gain is liable to UK taxation.

Please contact us for further information and assistance.