If you sell a property, you might have to pay tax. This tax is called capital gains tax. The amount you might have to pay will depend on the amount of profit you make.
If the property you are considering selling is your main residence then you would normally be entitled to “Principle private residence relief”. This relief normally allows you to you to sell your home without incurring capital gains tax (CGT).
Some types of properties that might be subject to capital gains:
The Government has a Capital Gains Tax Calculator in the .Gov.UK website. We have found this useful for clients. This might give a rough guide to the possible CGT you might have to pay. IT won’t deal with complex capital gains tax calculations and we would therefore always recommend you speak to an appropriately qualified adviser and if necessary seek professional advice.
Tax payers also need to be aware if they sell any other assets or investments that might be subject to CGT in the same tax year and the profits will be amalgamated together. Assets that are jointly owned any profits need to be split between the owners on an appropriate basis.
Over the month weeks and months, we are looking to improve the personal finance portal (PFP) for our clients. The first stage is to introduce a live chat, audio and video service whilst clients are logged into PFP. This is the first level of improvements we will be making over the coming months. The live chat service is safe and secure.
Quite often friends and clients ask me about the best pension plans and I can understand. Pensions are complicated, even more so since Pensions Freedoms came into play.Successive Governments have tinkered with the pension rules and regulations time and time again. I started in the Financial Services Industry in 1984 and I can say each year the government has made some sort of change. Sometimes for the better or worse, but usually it adds another layer of complication. Terms such as Lifetime allowance, Fixed Protection, Capped and Flexi Access Drawdown are technical terms that generally confuse the public.In its simplest form a pension is a savings contract with tax breaks written under pension rules.