There's been a shake-up in Capital Gains Tax law. Landlords - read on!
PUBLISHED: 14:31 25 August 2015 | UPDATED: 14:31 25 August 2015
If you're a landlord, you'll want to take note: the Government has altered the systems in place with regards to Capital Gains Tax (CGT).
This has in fact been the case since April of this year; and now, if you are a non-resident holder of a UK residential property, you are liable for UK CGT when your property sells at any point in the future.
As explained by estate agency Savills last week, “the Government has allowed a ‘re-basement of costs’...meaning that CGT will only be payable on any increase in the property value from April 6, 2015 to the price at point of sale.”
This means that now’s the time for landlords to think about having a valuation conducted on their property, to find out precisely what it’s worth. Simply put, this will help to avoid any future ruckus when it comes to working out sale prices. The calculation will be made by taking the sale price less the property value on April 5, 2015, giving you your figure of taxable gain (currently 18 per cent or 28 per cent).
To get this done, landlords can go one of two routes - a complementary “market appraisal” from a sales team or a “red book” valuation which is chargeable but more formal, and less likely to be contested in the future.
To arrange, Bernadette Oliver, Head of Savills Harpenden Lettings, can be contacted for further details on 01582 465000.