Capital gains tax on property
If you are selling a property or other capital asset then you will need to understand whether you have a tax liability. Sometimes the tax liability can only be minimised if you take action before the sale.
Most properties in the UK and in many other countries have significantly increased in value over recent years. Capital gains tax is charged at lower rates than income tax - but you may often be able to reduce this further if you take advice in good time.
What is capital gains tax?
Capital gains tax is a tax paid on the profit that an individual makes from selling or disposing of certain assets that have increased in value - however, some assets can be tax-free, such as gifts to charity, and gifts to your husband or wife.
Selling property overseas
If the property is overseas then you will also need to take into account the currency difference. Clients selling property in the US have been in the unfortunate position where the dollar price of a property has remained the same over 10 years, where as there is a significant gain in sterling on which tax must be paid - even if you are buying another asset in dollars. Our expert international tax advisors can assist you with any financial transaction made overseas.
How to reduce capital gains tax
Some clients have been able to save tax by changing their plans and moving back into a property prior to sale to maximise the private residence relief. The earlier you start to plan, and with the assistance from our expert tax advisors, the more likely you can reduce the tax on your sale.