CGT rules and changes - selling a property expected to complete ~1st April

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d000hg replied

7 February 2023, 10:36
Originally posted by NowPermOutsideUK View Post

Any chance you can share the rental income and price so a rental yield can be calculated? I am always curious what the break rate is

No not really up to share figures, unless it's relevant to my question. The yield is pretty poor ~4.5% though, which is one reason we are selling.
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northernladuk replied

6 February 2023, 20:15
Originally posted by NowPermOutsideUK View Post

Any chance you can share the rental income and price so a rental yield can be calculated? I am always curious what the break rate is

Here he goes again
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NowPermOutsideUK replied

6 February 2023, 20:07
1) Its based on exchange date not completion

2) i dont know but easily checked online. All straightforward from experience - If memory serves me right you pay it straight away and then redeclare it on your SA but check for procedure rules as they change

CGT being cut to 6.3K from 5 April so a good time to get out

Any chance you can share the rental income and price so a rental yield can be calculated? I am always curious what the break rate is
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d000hg started a topic CGT rules and changes - selling a property expected to complete ~1st April

6 February 2023, 09:52
CGT rules and changes - selling a property expected to complete ~1st April
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 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.

Is there anything more complicated to watch out for or is CGT fairly straightforward - allowance, flat rate above that, done?
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