Fabaci Accountants and Tax Advisers

Tax Implications When Selling a Property

Tax Implications When Selling a Property

Tax Implications When Selling a Property – You have finally decided that it is time to sell your buy-to-let property but unsure what the tax implication would be? Here we provide you with the tax implication that should be taken into account:

Income Tax

As you are probably HMRC are, on year to year, reducing the tax relief on finance cost with the aim to eliminate the relief completely in a couple of years.

Transferring your property portfolio into a limited company can yield in many tax efficiencies. Based on your personal circumstance, our expert landlords’ accountants will advise you on your next step and the best course of action.

Capital Gain Tax

The profit earned on the sale of the property is subject to capital gain tax. With a capital gain allowance of £11,700 meaning that all profit on top of the capital gain allowance are taxed at either 18% or 28% depending on whether you are a basic rate taxpayer or a higher rate taxpayer.

With appropriate structuring and sound tax, planning the tax expense on your property’s sale could be minimised. For example by selling properties over several years.

 

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