Reader Question: Will I pay capital gains tax on the sale of my flat?

Posted on by

Get an answer to your financial question online Reader Question:

I will make £30,000 profit when I sell my flat. Will I pay capital gains tax on my profit?

 

My response:

That depends if it is your principal residence or not.

Ordinarily if you were to sell a property any profit which you make is liable to capital gains tax (currently at a rate of 18%). However, you do not pay capital gains tax on the sale of your principle residence i.e. where you live – this is known as Private Residence Relief.

However, if the flat is a second property (and not your principal residence) then you may be liable to capital gains tax. For more details and how you might mitigate any tax liability then read my article How to cut your tax bill on a second property sale.

If in doubt seek the help of a qualified accountant.

I hope that helps.

Damien


The material in any email, the Money to the Masses website, associated pages / channels / accounts and any other correspondence are for general information only and do not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation. See full Terms & Conditions and Privacy Policy.

Image: Danilo Rizzuti / FreeDigitalPhotos.net

 

FREE e-book: 39 simple ways to cut your tax bill

Tax book version 3

Download your FREE copy here


About Damien

Damien is one of the most widely quoted money and investment experts in the national press and has made numerous radio appearances. He created MoneytotheMasses.com while working in the City when he became disillusioned with the way the public were left to fend for themselves because they could not afford financial advice.In 2014, after publishing his first book '30 Day Money Plan - Fix your finances in just 5 minutes a day' Damien quit his day job to focus his efforts on MoneytotheMasses.com