🌟 Reduce Capital Gains Tax on Property sales 🌟

25 Replies to “🌟 Reduce Capital Gains Tax on Property sales 🌟

  1. Hi Simon great stuff! quick question, what happense if i have the property under SPV limited company. can i just resign and get the money from the buyer and assign him as director ? will i be entitled to pay CGT then ?

  2. Hi Simon, I was told by a mortgage broker that if I remortgage my buy to let property and remove all the equity and then if I sell it after 2 years. The CGT will be based on only the remaining equity left on the property. IS that true or some bogus advise?

  3. Hi Simon, would it be legal for an individual to sell property to a limited company owned by the same individual at a loss in order to create a net Capital gain loss to then off set a capital gain made on the sale of another property to an external buyer?

  4. Hi Simon, If a property was purchased at a significant discount – say 50%, for CGT calculations, do I take into the actual discount price, or the market value price at the time of the transaction ?

  5. Surely you're just deferring CGT liability by investing in EIS, not removing the liability. Deferral of CGT is not available on investments in VCT or SEIS. Beware people!

  6. Hi Simon, thank you very much for the detailed information.

    I have a question on the IHT part (you assumed 220K of CGT being saved if an IHT declaration was made).

    Is the 220K gain, arising on sale, be attributable to or nominated as IHT in (say for eg) a child's name, even after the property has been sold?

    Or does the declaration of the property as IHT need to made BEFORE the actual sale (if sold immediately after sheltering this property under IHT, the disposal proceeds would equal transfer value and hence there wouldn't be any CGT?).

    Appreciate the clarification.

    Cheers!

  7. Hi, In an LTD, can company losses off-set against capital gains from sale of a property to reduce the tax liability ? So for example, if there are losses brought forwards from previous years, and then this year a property is sold at a gain, can the two off set?

  8. If you sell a BTL 12 years after buying it and it was your own first and main home for 7 years before then moving and turning it into a BTL, is there a reduction in CGT for the 7 of the 12 years ie 7/12ths as was main home? I heard this somewhere that it might be the case? Great video by the way. Have subscribed.

  9. Hi
    I have setup my own limited company regarding property trading and investing.
    In order for me to claim tax back on things like creating business cards via vistaprint, does my ltd company need to be VAT registered. And if so how do I go about doing this.

  10. So just to be clear I can claim tax back on things like petrol costs etc when travelling for property related reasons ?

  11. Hi @optimise accountant
    In order for me to corporation tax back do the expenses have to go through my business client account ? ie paying for petrol, or can you claim tax back even if paying for costs of business through my personal account.

  12. How does the annual allowance work? Clearly the allowance can and does change, but my question is do you have to claim it yearly, or is it automatically applied to your figures at point of sale. I'm quite new to property and so far when looking at capital gains tax all the illustrations I have seen only reduce the tax bill by 1x the allowance. I'm confused, is this an annual allowance or a one time allowance?

  13. My parents bought their home for approx Β£3,000.00, now it is worth approx Β£120,000.00 , granted the property was purchased over 50 years ago, but 50 x annual allowance would have a massive impact on any tax due. This is related to my previous question.

  14. Hi Simon very informative video, I have quick question i have buy to let property for 20 years brought for 27500 now is worth 130,000 buying and selling cost 4000 allowance 12000 I am on basic rate what is the cgt

  15. Thank you really interesting video, We have a slightly different problem and I was wondering if you had any thoughts on it we bought a commercial property which we will be converting into six flats when we sell the flats will we be liable for CGT and is there any way to mitigate that? Thanks James

  16. Hi,Do partners have full personal allowance (12K each partner) in cases they hold the property with different percentages ie. 90% one partner and 10% the other one). Does percentage of ownership affect the amount of personal allowance?

  17. Hi simon
    Our main home is in a lifetime interest in possession trust. Which I understand allows us to maintain our RNB and RNRB thus giving us from April 2020 Β£1,000.000 before IHT is due. We also have a buy to let property which we want to pass onto our 2 sons. Is it better to do a straight transfer of ownership and hopefully after 7 years it would be free of the estate for IHT purposes or is it better put it into a trust. Thanks

  18. Hi Simon thanks for the detailed presentation.

    I have just sold my property last week.I bought it in 2014 stayed in it for a month and my sister lived in it for 2 years.I then rented the whold property out for nearly 3 years whilst i lived in Asia as non resident for tax purposes.I returned to live in the property in April 2019 and also had a lodger up until Jan 2020.I have recently sold the house.
    How can i reduce my CGT in this instance,any help would be great…cheers!

  19. Simon , I have a property for sale at 400k I built it 10 years ago in the garden of my home . So land was free and I have no expense receipts for the build. So potentially a large cgt bill when sold. I moved in the the property for 2 years and it’s been rented since. If I have it valued for build costs I estimate 250k it still leaves a large profit Do you have any suggestions thanks

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