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

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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


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About Damien

When the rest of the City go home at night I switch on my laptop & sit up half the night writing MoneytotheMasses.com.Why? For two reasons.Firstly, because I hate the way the masses are being left to fend for themselves because they can't afford financial advice.Secondly, because no one else will.So I'm trying to rectify this by educating, informing and helping as many people as possible for FREE.