Capital Gains question

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    Capital Gains question

    Hi I would like to start selling one property a year from my portfolio and when I speak with my accountant he is not sure if I can use my capital gains allowance every year on the sale of a property? Basically I think the single allowance is around 10k and I was hoping I would only pay CGT on any declared profit over this figure minus any other deductible items? Am I missing something here?

    #2
    I think the issue is that there is a difference between a property developer and property investor, one pays income tax on earnings and the other can pay cgt - it comes down to the definition, it seems as though by your 'strategy' that you would fall into the property developer category and therefore pay income tax.

    hopefully someone with more knowledge than me will come along to provide a definitive answer

    if you get the book from tax café on avoiding propert tax, it is all in there, sounds like your accountant was correct to me.

    Comment


      #3
      Yes, you can sell as many of your investment properties each year as you wish.

      For 2013-14, the Annual Exemption for CGT is £10,900.

      Comment


        #4
        Are these properties rented out by you prior to selling them off. If you are introducing properties to your portfolio, doing them up then selling them then you are a property developer and IT and NI will apply not CGT.
        I gthey are ental properties from your portfolio then one a year will allow you to use your annual CG Allowance of £10,900.
        Regards Peter

        Comment

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