Capital Gains Tax - Declaration

Capital Gains Tax (CGT) - Declaration

There have been many queries 🙋‍♂️ and confusion 😕 in regards to this topic

We would like to clear ✔️ certain issues in order to make it easier for the seller or the seller to appoint a Specialist like an Accountant 👩‍💼 👨‍💼 to complete on his or her behalf

Capital Gain Tax on the sale of a Residential Property 🏠

There has to be a declaration ☑️ within 60 days of Sale ✔️

There are 2 options to declare 📖

1. Set up a HMRC Account online 🛜 for this (Quickest, simplest, fastest and easiest method to submit the report). Please note this account is separate from a Self Assessment Account

Or

1. Download a complete a Paper Form 📝 to send in the post (Although there have been some who have reported that HMRC take quite sometime to process to provide a payment reference

The Rates to pay CGT

Basic rate tax payer - 18% if total earnings from other sources of income is ⬇️ £50,270

Or

Higher rate tax payer - 24% if total earnings from other sources is 🆙 £50,270

Please note some of the tax could be at 18% and some at 24% if other sources of income is < £50,270 but when factor into capital gains the total earnings > £50,270

For this Tax Year 2024-2025 there is £3,000 Capital Gains Exemption

Please also note a Gift between spouse/partner is Tax 🆓

Reliefs

There are also Reliefs such as Gift Aid/Private Pension Contributions to increase ⬆️ the basic rate band

Relief if stayed in the property as PPR (Principal Private Resident) at anytime

Last 9 months before sale attracts exemption

Penalties

There are Penalties for late filing of Capital Gains Tax and late interest for when the Tax was due

If you complete a Self Assessment Return you will be expected to note the CGT details of the payment amount and payment reference.

Also by ensuring to do this you can see in the calculations whether enough CGT has been paid or not

Please consider an expert in order to ensure the ✅ Sale Price and ☑️ Purchase price as the well the costs associated with the sale and purchase is included

If you require further assistance or even prefer to have someone local to you to complete any CGT declaration

Please contact

Tel: 01212852534

Web: www.secureaccountsltd.co.uk

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