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Thinking of selling, potential capital gain

I am thinking of selling our rental property bought 3ish years ago. Does anyone have experience of taxation on any gain, specifically how and how and how soon after disposal is assessment/payment triggered, what is the threshold for the application of any tax liability, what are the rules around defraying liability with renovations costs and what is the expectation of evidence of payments for renovations materials and labour. many thanks

Just use one of the online CGT calculators. It now has to be paid within 60 days of completion.

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Yes, done this a few times. Holding in a company is a bit more involved but if its just private list all your acquisition and disposal costs and any building works - not maintenance - so… sale price, less purchase price, costs etc less capital costs less allowances and there is your figure.
What i do is also sell off some of my stocks and shares which are the dogs of my portfolio that havent performed well and that can balance out the rest of thje gain.
Worth speaking to an accountant as there are a few potential pitfalls, tax being a black hole an’ all.
Its criminal that the govt took away taper relief on the gain as now you are paying CGT on interim house inflation, at least if you own the props privately

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That’s helpful thanks. Do you have to submit invoices for renovations with the assessment

I’ve never used the standalone system, but when I had to do it as part of a tax return, it was just a declaration of the amount I believed I should pay and no evidence was required. I guess a sample of cases are investigated and that’s when the evidence would be required.

I believe it’s a month to submit a return and pay, with a £5000 fine if you miss the deadline. Only ‘improvements’ to the property are allowable against the total, no repairs. If the property is jointly earned both individuals’ CGT tax allowances for that year can be used to offset the tax due. The thing to watch out for is if the Capital Gains from a sale pushes your total earnings for that year into a higher tax bracket since HMI regards all forms of income as being the same.

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Many thanks for this information

It’s now 60 days, not the original 30

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Hi - I sold a property in October 2021 - the Gov CGT guide online is really useful and it was easy enough to complete and pay. You can include certain costs such as legal and stamp duty paid when you bought the property. I didn’t need to provide any evidence, although I didn’t have any renovation work. It wasn’t as much as I thought it would be :slight_smile:

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Many thanks for this useful information