My wife and I own a BTL property we are selling for a combined profit of around £50k (before expenses), which we've owned around 5 years and never lived in.
The changes to CGT coming in for the 22/23 tax year half our tax-free allowance and our likely completion date is right on the cusp of the new year, though we also face a mortgage early redemption penalty of £1k before 31st March when the mortgage discount period ends.
I've not faced CGT before so a couple of queries if anyone wouldn't mind.
The changes to CGT coming in for the 22/23 tax year half our tax-free allowance and our likely completion date is right on the cusp of the new year, though we also face a mortgage early redemption penalty of £1k before 31st March when the mortgage discount period ends.
I've not faced CGT before so a couple of queries if anyone wouldn't mind.
- The cut in CGT allowance will affect property sales based on the completion date, right? If we had agreed theoretically to complete on 5th April but it slipped a day to 6th due to a last minute bit of paperwork, it would come under 22/23 rules?
- CGT is charged at 18/28% depending whether or not you are a high-rate tax payer, but how is that calculated? I believe CGT must be payed within 60 days but if for instance we sold on 6th April, I wouldn't know if I am a HR tax payer in 22/23 until nearer the end of the tax year.
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