If you are a landlord, you need to be aware of your financial commitments when buying a property and when you sell it. When you purchase a property as a landlord, you will also need to pay stamp duty.

When you come to sell your property, you may have to pay capital gains tax.  The tax is on the ‘gain' i.e. the profit that you have made during the sale.  This form of tax is required if you:

• Have a buy-to-let property
• Have commercial premises
• You are selling land
• You have inherited a property

In 2016-17 capital gains tax rates remain at 18% and 28% for the sale of properties.

In simple terms, the gain is usually calculated as the difference between the purchase price and sale price.  There are lots of other factors that may need to be taken into consideration depending on your circumstances, for example, if you sell a lease or part of your land, or it had been your private residence at some point before letting it.  Having supported a lot of landlords through this process, we can make sure that you pay the correct amount of capital gains tax.

Also, we will ensure that all costs incurred when buying, selling and improving property are taken into consideration.  Some of the costs can include estate agents and solicitors fees as well as funds invested in improving the property e.g. building an extension. 

If the property you are selling is a business asset then there is also the opportunity to get some alternative tax relief, there are four main areas of tax relief that we can look at on your behalf:

1. Entrepreneurs Relief
2. Business Asset Rollover Relief
3. Incorporation Relief
4. Gift Hold-Over Relief

In some cases this will reduce the amount of tax you need to pay, in other cases, you may be able to delay the payment for a period.

If you have more than one property, this process can be more complicated, and we are always available to advise.  There are different rules again if you make a loss when selling your property and it's important to understand what you need to report to the HMRC.

If you are a landlord and need any advice on Capital Gains Tax, please do get in touch with us either by calling 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it.k.