It is a commonly held point of view that when you sell your home you won’t pay any tax, and in particular, that you won’t pay any Capital Gains Tax on the difference between the purchase and sales prices.
Unfortunately, there are circumstances when this is not true. For example, you may have some tax to pay if you have let all or part of your house for part of your period of ownership.
There is also a restriction on the amount of land you can sell as part of your home/garden tax-free. Presently this is 5,000 square metres (just over one acre). And if you sell your home and retain part of the garden to sell at a later date, the subsequent sale of the land will attract a Capital Gains Tax charge.
You may also incur a tax cost when you sell your home if you have used part of the property exclusively for business purposes – this would not include non-exclusive use, such as using a spare bedroom or study as a part-time home office.
Issues may also occur if you sell your UK home while you are non-resident for UK tax.
If you are unsure of the tax status of your home for tax purposes, by all means call to discuss your options.
Source: New feed