Guide to Avoiding Capital Gains Tax in the UK

Подписаться 23 тыс.

Просмотров 24 тыс.

50% 1

Don't pay unnecessary capital gains tax. Use this guide to learn best practices on how to avoid capital gains tax in the UK.
Looking for a new Real Estate Property Tax Specialists? www.optimiseaccountants.co.uk...
United States (US)
Get an Individual Tax Identification Number (ITIN) here £295: www.optimiseaccountants.co.uk...
1040 US tax returns services: www.optimiseaccountants.co.uk...
Use our free US tax calculators: www.optimiseaccountants.co.uk...
United Kingdom (UK)
Use our free UK tax calculators: www.optimiseaccountants.co.uk...
Need a buy to let mortgage? survey.zohopublic.com/zs/GuCCYx
Claim Capital Allowances here www.optimiseaccountants.co.uk...
Reduce your Capital Gains Tax www.optimiseaccountants.co.uk...
Inheritance Tax Planning www.optimiseaccountants.co.uk...
Need a will or LPA? survey.zohopublic.com/zs/yJCsPW
Get free property investing education here simonmisiewicz.krtra.com/t/kC...

Хобби

Опубликовано:

19 июн 2019

Ссылка:

Скачать:

Готовим ссылку...

Добавить в:

Мой плейлист

Посмотреть позже

Комментарии : 193

@Simon-Misiewicz-US-UK-Taxes Год назад

Request a call back: If you are looking for a new US or UK real estate property tax specialists contact us here: survey.zohopublic.com/zs/80zrXp

@michaelj.freeman5005 5 лет назад

Thank you for your clear and comprehensive presentation.

@Simon-Misiewicz-US-UK-Taxes 5 лет назад

You are very welcome 🙏 Hope you get to see me live next Monday at 7pm too.

@Simon-Misiewicz-US-UK-Taxes 2 года назад

Free CGT Calculator: www.optimiseaccountants.co.uk/uk-capital-gains-tax-calculator/

@Simon-Misiewicz-US-UK-Taxes 2 года назад

Tell us more about your situation here survey.zohopublic.com/zs/n0BUzb. Feel free to read our article www.optimiseaccountants.co.uk/knwbase/avoiding-capital-gains-tax-on-property-uk/. Why not join us at one of our live events? Register here: www.optimiseaccountants.co.uk/monthly-seminars/.

@Simon-Misiewicz-US-UK-Taxes 4 года назад

Capital Gains Tax Calculator: bit.ly/2XkxbTF Download the buy to let tax calculator. CGT 30 days reporting: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-T4YIvGUCAdI.html

@iansutherland6970 3 года назад

@yusufdarbar3431 3 года назад

Thanks in advance! Regards, Yusuf

@lesleyalexander3591 3 года назад

very helpful

@Simon-Misiewicz-US-UK-Taxes 3 года назад

You are welcome

@ML-gf7kf 4 года назад

Also can you make a video on freezer shares to pass on your wealth. A and B shares

@DIPU1036 4 года назад

Hi Simon, Great content, as ever. Question: How do you reduce your CGT if you have lots of properties of combined value over £1,000,000?

@Simon-Misiewicz-US-UK-Taxes 4 года назад

CGT is based on sales price less purchase price less capital refurb costs. My videos give some specific examples of how to mitigate CGT. A consultation will help you understand which option is best for you

@DIPU1036 4 года назад

@@Simon-Misiewicz-US-UK-Taxes Nearly ready for a consultation.

@adds8235 2 года назад

Great video! Is my IHT lifetime allowance per child or shared between them?

@Simon-Misiewicz-US-UK-Taxes 2 года назад

It is the parent that gets a £325,000 lifetime allowance rather than each child. Thank you for the kind complimentary words

@drivestolic8916 5 лет назад

Hi Simon great stuff! quick question, what happense if i have the property under SPV limited company. can i just resign and get the money from the buyer and assign him as director ? will i be entitled to pay CGT then ?

@Simon-Misiewicz-US-UK-Taxes 5 лет назад

Hi D You can resign as a director but no doubt still own the shares. Therefore this does not achieve what you are seeking to do sadly

@Des-qn2yc 3 года назад

Hi Simon, if you lived it in the BTL (6yrs)and took the equity out to buy another resi to live, what is the formula to calculate the CGT payable on the BTL if sold? Can a partnership split the CGT bill as well as the income tax (if it is on one name)? Also, if you go back and live in that BTL converting it to resi, would there be CGT if sold after?

@Simon-Misiewicz-US-UK-Taxes 3 года назад

Hi Des, to be honest this is a quite a complex scenario and not one that can be answered here. There are a number of factors to consider with private residence relief of which a more detailed conversation would be required to surface out the details

@minamino8482 4 года назад

Hi Simon thanks for the detailed presentation. I have just sold my property last week.I bought it in 2014 stayed in it for a month and my sister lived in it for 2 years.I then rented the whold property out for nearly 3 years whilst i lived in Asia as non resident for tax purposes.I returned to live in the property in April 2019 and also had a lodger up until Jan 2020.I have recently sold the house. How can i reduce my CGT in this instance,any help would be great...cheers!

@Simon-Misiewicz-US-UK-Taxes 4 года назад

Great question but sadly not something I can help on a RU-vid platform. We can minimise the CGT but I need to know some key dates and justifications. Book a call using the code RU-vid25 to get 25% discount app.acuityscheduling.com/schedule.php?owner=19038952

@ymwan 3 года назад

I guess if the CGT uplift is removed (currently under review) then gifting the asset away under the method here under part of the 7yr exemption for IHT will some how fall in line too?

@Simon-Misiewicz-US-UK-Taxes 3 года назад

Well CGT is payable but CGT exemptions will continue for IHT purposes using trusts

@johnrogers2292 Год назад

Yes . If I have 2 x small rental properties and live in a different house ( my partners house with her) If I sold one of my rental properties , as I don’t live there as primary residence, would I have to pay CGT over any profit that’s over the annual allowance ? Thanks .

@Simon-Misiewicz-US-UK-Taxes Год назад

You will pay CGT less the annual £12,300 allowance

@aliamir8018 4 года назад

Hi Simon, thank you very much for the detailed information. I have a question on the IHT part (you assumed 220K of CGT being saved if an IHT declaration was made). Is the 220K gain, arising on sale, be attributable to or nominated as IHT in (say for eg) a child's name, even after the property has been sold? Or does the declaration of the property as IHT need to made BEFORE the actual sale (if sold immediately after sheltering this property under IHT, the disposal proceeds would equal transfer value and hence there wouldn't be any CGT?). Appreciate the clarification. Cheers!

@Simon-Misiewicz-US-UK-Taxes 4 года назад

The example numbers are based on the transfer of the property into trust.

@Simon-Misiewicz-US-UK-Taxes 4 года назад

The IHT transfer is also based on the property going into trust. Basically valued at he point of transfer You may need to book a tax consult to get further clarification if based on a specific circumstance

@aliamir8018 4 года назад

Thank you Simon!!!

@tamshora090 4 года назад

Hi Simon, quick question please, does the £ 12,000 CGT annual allowance apply to any assets ? Or only some kind?

@Simon-Misiewicz-US-UK-Taxes 4 года назад

You will be pleased to know that this applies to all assets chargeable to CGT 🙏

@parweezkhan9069 4 года назад

Hi Simon very informative video, I have quick question i have buy to let property for 20 years brought for 27500 now is worth 130,000 buying and selling cost 4000 allowance 12000 I am on basic rate what is the cgt

@Simon-Misiewicz-US-UK-Taxes 4 года назад

It is a very quick question but it is not the same pace providing the answer. It depends on many things such as - if you lived in the property - how long you owned the property - how much you earn gross - if you are married and their tax position There are a number of factors that can help reduce CGT Book a tax consult to see how we guarantee to reduce CGT

@parweezkhan9069 4 года назад

Hi simon Iwould like to know how you charge to calculate my cgt and what information you need?

@Simon-Misiewicz-US-UK-Taxes 4 года назад

Book a Finance & Tax consultation with Simon Misiewicz. Use the coupon code “RU-vid25” to get the 25% discount Book your tax call now call: app.acuityscheduling.com/schedule.php?owner=19038952&appointmentType=13019925

@JTS_next 4 года назад

Thank you really interesting video, We have a slightly different problem and I was wondering if you had any thoughts on it we bought a commercial property which we will be converting into six flats when we sell the flats will we be liable for CGT and is there any way to mitigate that? Thanks James

@Simon-Misiewicz-US-UK-Taxes 4 года назад

Hi James CGT is payable on the profit made. The % tax on profit depends on how you owned the asset CGT May always be mitigated in full but as I am sure you will appreciate not an easy one to discuss on RU-vid We have plenty of good CGT videos to get you started though

@stephenhinchliffe1095 4 года назад

Just to add if it was considered to be an adventure in the nature of trade then the profits would be charged as such i.e income tax or Corporation tax (depending upon ownership) rather than CGT.

@Simon-Misiewicz-US-UK-Taxes 4 года назад

@@stephenhinchliffe1095 You may need to get a tax consult to see how this may be delivered

@stephenhinchliffe1095 4 года назад

@@Simon-Misiewicz-US-UK-Taxes I am a retired HM Inspector of Taxes and was just explaining that the other possibility of trading may exist. I would certainly agree with Simon that anyone undertaking such an activity would be wise to take advice.

@michaelillingworth6433 4 года назад

How does the annual allowance work? Clearly the allowance can and does change, but my question is do you have to claim it yearly, or is it automatically applied to your figures at point of sale. I'm quite new to property and so far when looking at capital gains tax all the illustrations I have seen only reduce the tax bill by 1x the allowance. I'm confused, is this an annual allowance or a one time allowance?

@Simon-Misiewicz-US-UK-Taxes 4 года назад

Great question . Michael. The annual CGT allowances are automatically allocated to your personal self-assessment tax return. If you do not use them, you lose them. They are not carried forward to the following year. Each person gets an allowance so if a property is owned by two people then the gain is split between them and reduce by their respective CGT annual allowance.

@paulgrove3693 4 дня назад

YES. My brother and I are Tenants in Common on a house that our mother gave to us 11 years ago. Mother passed away last year so we now can sell or rent it out. We believe the house has increased in value by £300k in those 11 years. No mortgage on property. Brother has children and I do not. Is there a way I can reduce my CGT liability to 0? Thanks Paul

@Simon-Misiewicz-US-UK-Taxes 3 дня назад

That is never going to be an easy question to answer on a U2 form. You really do need to speak to your accountant paul as soon as you can 👍

@tonychilcott2254 4 года назад

Hi simon Our main home is in a lifetime interest in possession trust. Which I understand allows us to maintain our RNB and RNRB thus giving us from April 2020 £1,000.000 before IHT is due. We also have a buy to let property which we want to pass onto our 2 sons. Is it better to do a straight transfer of ownership and hopefully after 7 years it would be free of the estate for IHT purposes or is it better put it into a trust. Thanks

@Simon-Misiewicz-US-UK-Taxes 4 года назад

Sadly a little too complex to deal with on a RU-vid forum but please feel free to book a tax consult using the code RU-vid25 to get the answers: www.optimiseaccountants.co.uk

@ja8cm 4 года назад

Hi Simon, do you advise on cryptocurrency capital gains tax? From my limited understanding, HMRC treats it as investment assets like shares depending if your a trader or long term investor.

@Simon-Misiewicz-US-UK-Taxes 4 года назад

There are two ways of looking at this. Badges of trade (income tax) or assets (Capital Gain Tax). It depends on volume and the type invested into

@jamescole8988 5 лет назад

Hi Simon, would it be legal for an individual to sell property to a limited company owned by the same individual at a loss in order to create a net Capital gain loss to then off set a capital gain made on the sale of another property to an external buyer?

@Simon-Misiewicz-US-UK-Taxes 5 лет назад

Sadly yes as it would need to be transferred at market value given it is a connected party

@nikkion2140 3 года назад

The fact that currency is debased over time, hence the sale proceed today has not the same purchasing power as before, should this be factored into the CGT calculation? I mean your purchase cost should be the equivalent figure of the money today. Also, if one uses the sale proceed to re-invest in another BTL, would this qualify for CGT exemption like the case of selling a business then re-invest into another business within 2 years of the sale, on the assumption that a BTL property is being treated as a business/commercial activity? Thanks a million for your clarifications in advance.

@Simon-Misiewicz-US-UK-Taxes 3 года назад

Capital gains tax on a normal buy to let property would have to be paid irrespective if the money was reinvested. There are types of property and business activities which benefit from capital gains tax rollover relief. Sadly residential properties is not one of them

@pigsbishop99 4 года назад

Simon, does this still apply after the governement made changes last year?

@Simon-Misiewicz-US-UK-Taxes 4 года назад

Most of the tax reductions will still work apart from PRR that is reduced and Lettings relief, which is practically removed.

@82kentliu 4 года назад

Hi, In an LTD, can company losses off-set against capital gains from sale of a property to reduce the tax liability ? So for example, if there are losses brought forwards from previous years, and then this year a property is sold at a gain, can the two off set?

@Simon-Misiewicz-US-UK-Taxes 4 года назад

Hi Kent Thank you ever so much for the question and hope you had a good weekend The subject of losses being offset against profits in a limited company is a complex subject given the recent tax changes Needless to say some elements of losses may be used to offset against games but I would seek professional guidance on this point

@82kentliu 5 лет назад

Hi Simon, If a property was purchased at a significant discount - say 50%, for CGT calculations, do I take into the actual discount price, or the market value price at the time of the transaction ?

@Simon-Misiewicz-US-UK-Taxes 5 лет назад

If the property was sold to a connected person I.E.a family member or a limited company that you own then CGT will be based on market value If you generally sold the property to someone unconnected then it will be the actual sales price that would be taken into account

@Simon-Misiewicz-US-UK-Taxes 5 лет назад

If you had purchased the property at a discounted value for money and connected person then again CGT would be based on the actual sales price less the actual purchase price that you had paid

@MrThewillows Год назад

when a trust is created to transfer a mortgage free buy to let property into their name may I ask, 1) is their an age limit on the children 2) can it be 2 siblings to share the property 3) what becomes of the rental income as soon as the property is transferred. i.e. this income is curently settled using our own personal tax statements via accountant to hmrc. thanks for any help provided.

@nikkion2140 3 года назад

In a Trust, I guess, you become the legal owner and your children/siblings become beneficiaries. Forgive my ignorance, are they as beneficiaries then liable for CGT? Also, it you use lifetime IHT allowance, have you still got to file CGT declaration to HMRC? Is this applicable to the case the seller is a foreign investor/owner?

@Simon-Misiewicz-US-UK-Taxes 3 года назад

You are indeed right. This is a very complex scenario and one that I would always suggest that you reach out to a professional service provider.

@meledwards6755 Год назад

So, I have 2 properties to sell and the collateral I make I can buy another property for cash. I can use the IHT for this. But, my children will then own the next property. Do they have to keep It for a certain length of time before they can sell it? If we want to live in the property until we die can we create a tenancy agreement to allow us this right?

@Simon-Misiewicz-US-UK-Taxes Год назад

There are a few trip hazards that exist with this type of arrangement. You are certainly on the right lines but please do speak with your accountant before putting it into action

@michaelillingworth6433 4 года назад

My parents bought their home for approx £3,000.00, now it is worth approx £120,000.00 , granted the property was purchased over 50 years ago, but 50 x annual allowance would have a massive impact on any tax due. This is related to my previous question.

@mhoward181 4 года назад

Hi. How is CGT calculated when you live in a residential property then change to BLT. Purchase 85,000 residential. Then Changed to BTL 4 years later. Valued at 120,000 at time of remortgage to BTL. if I sold for say 120,000 would there be a liability. Or could I say it was valued at 120,000 when I remortgaged to a BTL so no CGT is owed. I realise I can claim personal allowance and what ever else if I have receipts but to make it easy would I owe anything on this basic calculation. Many thanks

@Simon-Misiewicz-US-UK-Taxes 4 года назад

To be honest this is too difficult to answer on a RU-vid channel. It is worth getting some paid for tax guidance to ensure you pay the least about of Capital Gains Tax

@kuzeyadventure 4 года назад

Hi,Do partners have full personal allowance (12K each partner) in cases they hold the property with different percentages ie. 90% one partner and 10% the other one). Does percentage of ownership affect the amount of personal allowance?

@Simon-Misiewicz-US-UK-Taxes 4 года назад

Hi there Ozgur A personal allowance is given to each individual person Therefore you could have 10% 5% hundred percent it does not matter because the person allows is provided to you no matter what Warm regards Simon

@kuzeyadventure 4 года назад

Can share of capital (%s) from sale be changed during property sale process?

@1234london1982 Год назад

Can we also deduct refurbishments cost before selling the property, in a case where tenants left your property in a bad state and you refurbished again in order to sell at decent price??

@Simon-Misiewicz-US-UK-Taxes Год назад

Yes indeed. you can 👍

@parweezkhan9069 3 года назад

Hi Simon, Thanks for the very informative seminar, My question is regarding holdover or rollover relief, I recently sold my buy to let flat and gain 100 Thousand cgt. Can I reinvest 100 Thousand in my restaurant which is rent out for a 21-year lease? and 100 Thousand business loan is outstanding. If I paid off this loan can I get any holdover or rollover relief? Thanks again, your advice always helpful. Pkhan

@Simon-Misiewicz-US-UK-Taxes 3 года назад

Why not speak with me to ensure that you have the right tax structure in place? You and I will spend the following time working for you as follows: - 60 minutes pre-meeting for me to read all the questions and information provided and identify tax solutions - 60 minute meeting: You and I will discuss the very best tax solutions that I have identified - 60 minutes after the meeting for me to send you a follow up email and call recording - 30 minutes for me to answer any questions that you have following my email Use code CRM25 to get 25% discount - Book a tax saving call here: 60 minutes with me will cost £375 from the usual price of £500 using the code CRM25 Book a tax call here: optimiseaccountantsltd.as.me/60mintaxcall

@imanahmed4887 4 года назад

Hi @optimise accountant In order for me to corporation tax back do the expenses have to go through my business client account ? ie paying for petrol, or can you claim tax back even if paying for costs of business through my personal account.

@Simon-Misiewicz-US-UK-Taxes 4 года назад

Sadly your company cannot pay personal expectations even if you pay through your company card The whole debate on paying petrol receipts and car maintenance depends on whether or not you want a benefit in kind charge for the company paying for these items You may be better to put an expense claim in for mileage at 45p for the first 10,000 miles and 25p thereafter

@imanahmed4887 4 года назад

Hi again I meant paying for petrol on the way to viewing properties, which can be seen as a business activity. If this petrol is payed using my personal card. Would I still be viable for claiming tax back. Sorry if question was posed in the wrong context. I ask because I have been paying my business petrol costs on my personal card. I will definitely be in touch with optimise as the portfolio is expanding beyond my tax expertise level

@Simon-Misiewicz-US-UK-Taxes 4 года назад

I would not claim petrol receipts rather claim the mileage allowance instead and keep a clear log book of all your trips

@mislam9715 3 года назад

Hello Simon What if you’ve a buy to let property after a a few years then decide to move in and live in it Does CTG still apply ?

@Simon-Misiewicz-US-UK-Taxes 3 года назад

CGT would apply but will be discounted for the time you live in the property

@simon_k4551 3 года назад

@@Simon-Misiewicz-US-UK-Taxes My example is the reverse. I bought it to live in, then rented out after I married and moved in. Is it sale price minus the value at the time I rented? Or a proportion of the time owned? Great info, much appreciate your time and effort.

@Simon-Misiewicz-US-UK-Taxes 3 года назад

Hi Simon Unfortunately this could be quite detailed and complex nature nature. I would suggest that you speak to a tax specialist or an accountant to go through the finer points. It is not as simple as writing a couple of lines to get the solution that is right for you and law-abiding. We can always book attack school with us at Optimise Accountants using the code RU-vid25

@johnporcella2375 2 месяца назад

If somebody had no other income, could they use their personalntax allowance to reduce their CGT liability?

@Simon-Misiewicz-US-UK-Taxes 2 месяца назад

Sadly not but it does increase the basic rate tax band of 18% for the personal allowance

@momodoumboob3615 Год назад

If I transfer £× to my grand daughter out of the sale proceeds of a secondary or 2nd home will this £× be liable to CGT....thanks

@Simon-Misiewicz-US-UK-Taxes Год назад

There are no capital gains tax issues with the transfer of money from the sale of a property to your granddaughter. You do need to consider inheritance tax. You would’ve already paid capital gains tax on the sale of the property. Therefore, you do not need to pay the tax twice. Best of luck for 2023

@imanahmed4887 4 года назад

So just to be clear I can claim tax back on things like petrol costs etc when travelling for property related reasons ?

@Simon-Misiewicz-US-UK-Taxes 4 года назад

Indeed you can get corporation tax relief on these expenses.

@imanahmed4887 4 года назад

Ok i understand. But then what is the added advantage of being VAT registered in property. Or is it suggested that not being registered is better ?

@Simon-Misiewicz-US-UK-Taxes 4 года назад

To be honest that is quite an open question and not an answer I can give without knowing your business. One thing that we can be certain of is that a trade business with a revenues greater than £85,000 needs to be VAT registered.

@nixodian Год назад

another way is to live in the letted property (or just have the flat's council tax or bills in your name?) for 6 months or something?

@Simon-Misiewicz-US-UK-Taxes Год назад

That is a very risky way of doing things. Hmrc do not put a timeframe on how long you should live in the property but look at the circumstances of where you are living there

@nnenne1 3 года назад

Hi can you reduce capital gains tax by accepting an offer on a flat sale and including fixtures and fittings as extra charge cash? Say £300k, and 30k for fixtures, thereby saving on CGT?

@Simon-Misiewicz-US-UK-Taxes 3 года назад

Sadly not

@nnenne1 3 года назад

Reduce UK Tax on business and investments tyanks

@Simon-Misiewicz-US-UK-Taxes 3 года назад

You are welcome

@chrisgallagher6513 7 месяцев назад

Yes Sold my Commercial office for £ 330k paid £ 250 to purchase me and my wife was both owners so have £ 6 k each CGT relief so libel for CGT on the 68K can this be lowered obviously minus purches cost refurbishment costs and selling costs will reduce the 68k great videos by the way

@Simon-Misiewicz-US-UK-Taxes 7 месяцев назад

This is a fabulous question. I was just that you talk with your tax advisor to go through all the scenarios in which you can reduce capital gains tax. Getting an answer on RU-vid for a specific case could lead to disastrous consequences.

@omerahmed3959 4 года назад

Simon if i transfer the funds to my siblings or family how do i spend it later or do I make that person use that money on my behalf for investments ?

@Simon-Misiewicz-US-UK-Taxes 4 года назад

Can you clarify the scenario for me as I was not entirely sure what was meant? Sorry 😐

@omerahmed3959 4 года назад

So I transfer the profits to my sibling , on paper that’s his money now ! So do I ask him to make investments I want to make using that money on my behalf ? Cheers mate

@Simon-Misiewicz-US-UK-Taxes 4 года назад

If you transfer an asset it could trigger CGT or an IHT issue. Best get some decent tax advice on that one Omer

@omerahmed3959 4 года назад

Optimise - UK Property Tax Specialists no worries cheers matey !

@davidwu135 3 года назад

Dear Simon We bought a property in England in 1998 for 108000£ and now We plan to sell it this year ,say for 500000£.The property is jointly own by me, my wife and my son. We have no other property in UK. We think We are non residents UK citizen as We have been living abroad for over 10 years, the property have let out in the last 2 years. My question is , bearing in mind that each of us would have tax allowance of 12000£ each year and each of us, are we still liable for any cgt? if so, would that be a substantial amount ? thank you David Wu

@Simon-Misiewicz-US-UK-Taxes 3 года назад

Hi David, please do get some tax advice on this particular case. It is not something I can share here on RU-vid. There are many ways in which you can reduce capital gains tax bearing in mind you are non-resident

@imanahmed4887 4 года назад

Hi I have setup my own limited company regarding property trading and investing. In order for me to claim tax back on things like creating business cards via vistaprint, does my ltd company need to be VAT registered. And if so how do I go about doing this.

@Simon-Misiewicz-US-UK-Taxes 4 года назад

Those expenses act as a cost. They will reduce the profit made. You do not need to be VAT registered to claim the costs

@imanahmed4887 4 года назад

Ok brilliant thanks

@edoak1120 Год назад

Hi Simon, great video. I believe you can also top up your pension and use EIS schemes to further reduce CGT? Can you explain how these work please?

@Simon-Misiewicz-US-UK-Taxes Год назад

Yes it is possible to use EIS schemes. www.optimiseaccountants.co.uk/knwbase/enterprise-investment-scheme-tax-relief/ I do not have a video on this complex area of tax

@bexydavo 9 месяцев назад

Hi. I own a property that I bought in 2006. I lived there for 4 years and it has been let ever since. It is the only property I own. Will I have to pay CGT if I sell it? If so, can I avoid CGT by moving back into the property and then selling it?

@Simon-Misiewicz-US-UK-Taxes 9 месяцев назад

CGT is a complex calculation. Do the numbers and consult with us if the bill is more than £2,000

@Simon-Misiewicz-US-UK-Taxes 9 месяцев назад

www.optimiseaccountants.co.uk/uk-capital-gains-tax-calculator/

@yusufdarbar3431 3 года назад

Hi Simon, I wish I had taken some advice before I did this... My dad just sold me his BTL for £331,000 and it surveyed up at £600,000 He paid off his mortgage of 196,000 on the property and made a profit of £135,000. I paid £10,000 stamp duty too. Does he need to pay CGT?

@Simon-Misiewicz-US-UK-Taxes 3 года назад

Yes, CGT does need to be paid on this transaction.

@yusufdarbar3431 3 года назад

Thanks for your reply. From that 135k profit, 35k was the original price paid for property. Leaves 100k. He is going to renovate the house so will spend 30k. So how much percentage of the 70k will he need to pay? Thanks!

@Simon-Misiewicz-US-UK-Taxes 3 года назад

He needs to get tax advice as it depends on many other factors which I won’t be able to support by a RU-vid forum

@antonioazzopardi2807 Год назад

I have two buy to let properties they each cost £70,000 and they’re both worth about £500,000 today and I owe 200,000 on each of the remortgaging a few times over the last 25 years I would love to liquidate one or both of the properties but it seems this far too much capital gains tax to pay how would you recommend I could get around capital gains tax I also do have two daughters

@Simon-Misiewicz-US-UK-Taxes Год назад

It is possible for you to decrease capital gains tax quite significantly and it might be worth you reaching out to Woods at Optimise Accountants website to book a 30 minute text consultation to understand more

@almor2445 3 месяца назад

I own half a house as joint tenancy with my mother. She is signing her half to me for nothing. In fact ive been paying her cash and unofficial gifts for 15 years but can't prove it. So we have to say its a gift. The sale price today would be 110k more than we paid so 55k profit each. Its her 2nd home so 28% on 55k minus the 6k cgt allowance. If she dies within 3 years is the estate liable to pay iht as well as cgt?

@Simon-Misiewicz-US-UK-Taxes 3 месяца назад

She will initially pay capital gains tax on the gift, if any. If she died within seven years than the acid is port baccy for inheritance tax purposes. She will receive a credit for the capital gains tax paid against the inheritance tax bill.

@almor2445 3 месяца назад

@Simon-Misiewicz-US-UK-Taxes aah thanks

@BBalachanthiran Год назад

Sir how can transfer the property to my parents without paying CGT

@Simon-Misiewicz-US-UK-Taxes Год назад

This is unlikely to be possible unless we know the full story. Please visit our website to book a tax consultation

@lawb4561 4 года назад

Simon , I have a property for sale at 400k I built it 10 years ago in the garden of my home . So land was free and I have no expense receipts for the build. So potentially a large cgt bill when sold. I moved in the the property for 2 years and it’s been rented since. If I have it valued for build costs I estimate 250k it still leaves a large profit Do you have any suggestions thanks

@Simon-Misiewicz-US-UK-Taxes 4 года назад

Go abroad for 5+ years and get a 2015 valuation. The gain is then reduced to the sales price less the 2015 valuation Alternatively you can invest in a EIS scheme and again will be deferred or even mitigated over a number of years

@marisaq8651 4 года назад

@@Simon-Misiewicz-US-UK-Taxes Hi Simon. Hasn't this rule changed as of April 2020?

@Simon-Misiewicz-US-UK-Taxes 4 года назад

The video was fine before April 2020 so parts may be updated in our recent videos

@RRW 2 года назад

Yes I have bought a flat for my mother in law to live in . I have a mortgage on the flat but not a buy to let mortgage. I would like to sell the flat and move my mother in law. How can I reinvest the profit in to a new building. With our paying CGT👍

@Simon-Misiewicz-US-UK-Taxes 2 года назад

As you did not live in the property CGT would be payable

@AdA-fk9yq 4 месяца назад

When you transfer into a trust you have to pay the full capital gains tax.

@Simon-Misiewicz-US-UK-Taxes 4 месяца назад

Unless you use your IHT lifetime allowances instead

@ML-gf7kf 4 года назад

Hi . If I have 2 LTD companys one for trading such as retail and 1 for buying properties. What’s the best way most tax Efficient. 1) transferring money from trading ltd company to property LTD to buy property(loaning) or 2) taking Money out as dividends from trading company and then buying through the property ltd? With option 1 does this reduce any tax or it bad because the trading company’s accounts are messed up Incase you decide to sell

@Simon-Misiewicz-US-UK-Taxes 4 года назад

I think I answered that on another comment

@ML-gf7kf 4 года назад

Optimise - UK Property Tax Specialists hi which comment was this ?

@Simon-Misiewicz-US-UK-Taxes 4 года назад

Sorry your questions was very similar to someone else’s and now I have lost where it was to copy Holding companies: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-8cCiZIYS0MY.html

@Simon-Misiewicz-US-UK-Taxes 4 года назад

Take money out of a company: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-G4OXTy4QfRA.html

@Simon-Misiewicz-US-UK-Taxes 4 года назад

Don’t take dividends out simply to put into another company as you will pay necessary inc me tax

@mikeagate 4 года назад

This example assumes that you have only the one BTL property which you have sold and 'given' it to your child. In the case where you have a number of BTL properties, you can still avoid or delay the CGT payment by claiming 'roll-over' relief. You can use the net proceeds to reduce the mortgage on one of your other BTL properties or use the funds to buy another BTL property and rollover the gain to the new or existing property. When you eventuually come to sell that property, you will be liable to CGT. But this can be 20 or 30 years down the road!

@Simon-Misiewicz-US-UK-Taxes 4 года назад

You are right Mike that we focus on one property as an example but it is possible to gift multiple properties You just have to do the numbers in regards to the IHT lifetime allowances

@hardihopkinson6980 4 года назад

Hi there Simon, I am looking for an expert in this field as a potential long term client of your services. How can I get in contact with you?

@Simon-Misiewicz-US-UK-Taxes 4 года назад

Hi Hardi Please head over to this link and book a call when it is convenient www.optimiseaccountants.co.uk/consultation-free-service-discussion/ Warm regards Simon

@PaulSymonds 4 года назад

If you sell a BTL 12 years after buying it and it was your own first and main home for 7 years before then moving and turning it into a BTL, is there a reduction in CGT for the 7 of the 12 years ie 7/12ths as was main home? I heard this somewhere that it might be the case? Great video by the way. Have subscribed.

@Simon-Misiewicz-US-UK-Taxes 4 года назад

That is true. You get the 7 years plus a bonus 1.5 years tax free. The rest will be taxed less the usual CGT annual allowances. Make sure (if you are married) that you work out the most tax efficient % ownership to minimise CGT further and gain two lots of CGT annual allowances.

@peterhoughton1731 Год назад

Will your children not have to pay tax on gaining the property through inheritance ?

@Simon-Misiewicz-US-UK-Taxes Год назад

Not if it is passed down through to the next generation

@peterhoughton1731 Год назад

Thanks, do you mean if my children pass it on to their children?

@Simon-Misiewicz-US-UK-Taxes Год назад

Yes indeed, like the royal family

@jasalg1 4 года назад

Surely moving the property to a new owner would incurr SDLT

@Simon-Misiewicz-US-UK-Taxes 4 года назад

Yes if there is consideration but no SDLT if a gift

@pataleno 2 года назад

Bought 25 years ago and god knows where the receipts are for the purchase costs and refurb costs.

@Simon-Misiewicz-US-UK-Taxes 2 года назад

See if your suppliers have them while you can

@johnporcella2375 2 месяца назад

Alternatively, never sell a property whilst alive and there is no Capital Gain and therefore no CGT!

@Simon-Misiewicz-US-UK-Taxes 2 месяца назад

Sometimes needs must John. If you lose income and need a cash injection as an example or you pay more tax than you earn 🧐

@johnporcella2375 2 месяца назад

Yes, this happens, alas.

@Simon-Misiewicz-US-UK-Taxes 2 месяца назад

Yes indeedy 🙌🙏👍

@tokenizegames 3 года назад

what if you have a property purchased at 280K with outstanding mortgage 160K and sold at 320K.

@Simon-Misiewicz-US-UK-Taxes 3 года назад

Great question. Download the spreadsheet to gain the taxable position for your specific situation. CGT can be calculated just on the info provided

@tokenizegames 3 года назад

My question is more related on how can i reduce the taxes from gain of value

@Simon-Misiewicz-US-UK-Taxes 3 года назад

That is a great question. Sadly not an answer that can be provided in a RU-vid channel

@lucywolfe2527 2 года назад

Sibling is a brother or sister, Did you mean sibling or did you mean child?

@Simon-Misiewicz-US-UK-Taxes 2 года назад

😍I think in my head I was referring to a child. Doh 🙄

@samarshi539 5 лет назад

Hi Simon, is it possible to reduce CGT by selling property investment via delay completion?

@Simon-Misiewicz-US-UK-Taxes 5 лет назад

In most cases 90% CGT is payable on a contract of sale (exchange). It is unlikely that there would be valid reasons to delay CGT. There are circumstances but sadly it is a case by case basis with too many variables to speak of around “conditional contracts”.

@samarshi539 5 лет назад

thank you very Simon.

@Simon-Misiewicz-US-UK-Taxes 5 лет назад

Always a pleasure

@tracyfifield196 4 года назад

You mentioned transferring property to your children in a Trust. Then later you say siblings. So I wonder if you do mean siblings or maybe that was a slip of the tongue and you meant to say ‘offspring’?

@Simon-Misiewicz-US-UK-Taxes 4 года назад

You can transfer a property to your children, which is what I normally discuss. You can also use the same mechanism to transfer the properties to anyone else. The reason why I suggest children it’s because of family wealth and tax planning

@marvinevans1668 5 лет назад

Surely you're just deferring CGT liability by investing in EIS, not removing the liability. Deferral of CGT is not available on investments in VCT or SEIS. Beware people!

@Simon-Misiewicz-US-UK-Taxes 5 лет назад

Marvin, the use amid VCT, EIS investments may be sold over time to utilise annual CGT allowances to avoid CGT.

@Simon-Misiewicz-US-UK-Taxes 5 лет назад

Following on the investments may remain and passed to children in other tax efficient vehicles.

@Simon-Misiewicz-US-UK-Taxes 5 лет назад

Finally VCT deferral relief isn’t available for investments in shares issued after 5 April 2004. However, if you’ve previously deferred a gain then this gain may be revived. Source: www.gov.uk/government/publications/venture-capital-trusts-and-capital-gains-tax-hs298-self-assessment-helpsheet/hs298-venture-capital-trusts-and-capital-gains-tax-2018

@Simon-Misiewicz-US-UK-Taxes 5 лет назад

Seis point: www.gov.uk/government/publications/social-investment-tax-relief-factsheet/social-investment-tax-relief

@Simon-Misiewicz-US-UK-Taxes 5 лет назад

www.gov.uk/government/publications/seed-enterprise-investment-scheme-income-tax-and-capital-gains-tax-reliefs-hs393-self-assessment-helpsheet/hs393-seed-enterprise-investment-scheme-income-tax-and-capital-gains-tax-reliefs-2019

@richardlycett6862 Год назад

So basically giving the house away.... Think I'd rather pay the £61,600 tax than lose £450,000.....

@tracyfifield196 4 года назад

Siblings? Or children? Or either?....

@Simon-Misiewicz-US-UK-Taxes 4 года назад

I refer to spouse when it comes to transfer of assets to make it tax free. Does that answer your question or have I completely missed the point? 🤷‍♂️

@bexydavo 3 года назад

Siblings are brothers and sisters, not children.

@Simon-Misiewicz-US-UK-Taxes 3 года назад

I was referring to all family members. Apologies for the lack of clarity

@bexydavo 3 года назад

@@Simon-Misiewicz-US-UK-Taxes Sorry Simon, it's the teacher in me! I am selling a property in the UK. I bought it in 2006 and it has been let since 2010. I have lived abroad since 2013. My potential CGT will not be huge but ideally it will be zero. I understand that I have to complete an HMRC form within 30 days of the sale. I know I can write off renovations against CGT but would HMRC want to see proof of any renovations? Any advice would be greatly appreciated.

@Simon-Misiewicz-US-UK-Taxes 3 года назад

If you are ever investigated by HMRC, they will expect you to produce invoices to quantify the renovations cost

@lesleyalexander3591 3 года назад

very helpful

@Simon-Misiewicz-US-UK-Taxes 3 года назад

Thank you Leslie I am appreciative of your kind comment