How to manage capital gains Tax from Property Investments 

Hi Jamie! I just wanted to thank you and to show my gratitude for all the value I am getting from your videos! I am learning quite a lot and it is also enjoyable. Thanks man! Your channel should ve already been at least 500k subs, but I guess most people are watching entertainment. You re awesome man, keep up the great content! Maybe someday we will do business together. Take care!

Right, need a Ltd co, a Dave or Trevor and Holiday home. Got it.

This guy's content is great! Love your stuff Jamie. Thanks for giving me so much knowledge over the last 6 months.

Just bumped into your website yesterday - some serious stuff you've got going here, keep it up!!

I like the way this is simplified in a layman's language. I once listened to a famous property investment teacher about the hybrid tax structure and l had a big headache at the end. Thanks for making it look and sound so simple 😊👍🏽

best property content ever!!!!! love your videos man thank you!!!!!!!!!!!

Great video Jamie. The content was just what I was after. Just subscribed 👍

THANK YOU SO MUCH FOR YOUR CHANNEL!! Amazing.. you literally cover every single thing I’ve been looking for and need to know about my property journey🤩🤩🤩

Awesome content buddy really helping me wrap my head around investment in properties.

Best explanation of Capital Gains Tax I have seen anywhere!

Jamie that's so well explained. Thank you..!!!

Really interesting video, you make some very good points. I work as an accountant, and it's surprising how many people are unable to make the distinction between a company's assets and their own, people often in my experience treat the company's bank/cash as if it were there. Similarly, the exercise of calculating the profit/loss of the company, a lot of people want to increase their profits higher and higher in what is essentially a statutory exercise to calculate their tax.

This is exactly the content people want 👍👍.

Fab video as always

Well-explained. Thank you Jamie.👍

This is really helpful to my understanding of an LTD. Thanks a lot Jamie!

Amazing content. BIG like 👍🏼

This can be added as a suggestion (not advice) on Lendlord. Thanks for your excellent video!

JAMIE---- at 11.15 you looked at the camera and then tossed your pen and CAUGHT it without looking ! you ever play cricket by any chance ? lol.

Great content mate, hopefully getting property one this year. Ltd company, BTL and interest only.

Great video Jamie, I got a lot from it but the main lesson I got was to not die. Cheers

Brilliant and informative thanks Paul dublin Ireland

Liked and Subbed instantly when you referred to Trevor as T- Dog

Good video. At the rate we are heading we will have no allowance. It was 12,300, then it was half that and now in April 2024 to 2025 they want to reduce it by half again so that’s around £3 000. 20% for pretty much all assets and 25% for investment property if a higher tax payer in 2024. This is exceptionally high which is why I’m here to see ways to avoid it. I realize some things are exempt. Main residence for example. Want to know if you sell can you invest it again in a new property before being taxed. In the US, for example I’m sure this is why they do when flipping a property. In Australia you have six years to leave the then come back but you can live a a main residence leave and come back and the six years applies again which es excellent Pensions are a scam. The age is currently 55 to get 25% lump sum tax free and that’s increasing to 57 in 2028. Apparently we are living longer is 5he reason. In reality they want to delay us getting that lump sum tax free sooner. Particularly if you have no dependencies be use it goes to the government. I also read some people have to pay emergency tax on that supposed tax free l7mp sum and need to do some more reading on this. ISAs are the best option. If you have kids this is easily the best option to do ASAP. Transferring to an Isa can also be done and it’s still tax free and no restrictions apply like the 20%. You can still put 20% I to it every tax year. Well done UK for having this. Countries like Australia have nothing like this as far as I am ware. ISA exempt from all taxes.

What great videos. We have just bought our second flat to let out after getting the first mortgage right down by piling the rent in and overpaying the mortgage. They are both purchased outright as we borrowed against our own home after finishing our "first" mortgage. Rent income was below self assessment levels but now we've two I realising a company is the best option?!

Great vid as always. Im curious how payments work through ltd companies. Say 500 monthly rent comes though, do you simply pay yourself a dividend to the amount on a regular basis?

This was a very helpful video. Only thing I’m struggling with: aren’t these figures based on one investment a year? Once you’ve used that cg allowance up on one property, you have to ignore it for the next.

Fantastic video as usual Jamie. Breaking down information into simple terms. I just had a quick question regarding ISAs. Even though its a tax free wrapper, is it taxed once you withdraw it? Very interesting about losses, I never thought about it like that. Thanks mate

very informative yet again... thank you... is there a way one can move owned properties to a Ltd Company and let it (not B2L as its 100% owned)

Hi Jamie, Love this education video. I wanted to ask if CGT would need to be paid if you reinvested the profits in another property or if you part gifted the equity from the buy to let sale to your son who is buying a main residence home. I’m entering this scenario now and I’m not sure if the accountant will be able to give an answer yet. Much appreciated if you know! Cheers Ryan

💡 Video Idea: How to forecast refurb/renovation costs and potential problems

Hi Jamie, thanks for uploading the video(s) very informative. One question, if you are a lower rate tax payer (20%) and sell a property you've had a while and make a 100k profit for example, presumably some of that profit will be taxed at 18% and some at 28% (would be great if this wasn't the case)?

Can you do a vid on super deduction tax, and how to apply it to property on a ltd company :)

Hi Jamie, Lovely videos & genuine pieces of advice, hats off. I need your advice on my leasehold Buy to Live flat in London with 86 years lease left on it. The lease has a clause I cannot let. The flat hs £300PA ground rent which the freeholder never demanded since I own the flat and it seems he is absent. The property is small for the family now. I do not want to sell the flat but what do you suggest to move forward keeping the flat and buying another buy-to-live property? Thanks in advance.

Thanks for this fab content, Jaime.🙌 Quick question: what's that 'whiteboard' of you're using called? 👀 can it be gotten off Amazon?

Ie The SASS. Can you transfer current/past pension pots into a new opening of one? Also, don’t want to be one of those, but could you do a video on it also 🤣

Great video as always 🙂 just wondering I’m about to buy my first buy to let and looking to keep it long term with the prospect of buying others in the future, when do you think is the best time to set up a limited company? After say 2-3 properties? Thanks 🙂🤗

Hi Jaimie, thanks for all the information. I am considering becoming a rent to buy landlord. Does capital gains tax apply when the tenant eventually buys the property, or is there something that can be done to mitigate this tax? Eg. perhaps putting the profit into a pension. Many thanks

Hi Jamie, are you able to recommend and accounting firm that you use or you used in the past that can help me navigate the detailed video you just shared, thanks for all you do !

Good video but I have a quick and easy question that isn’t covered here. I lived in my house for 4 years and have rented it out for the last 7. Do I get a CGT discount? Also I’m thinking to move back into it again so how long would it take for CGT to be wiped? (If at all). Thank you.

Brother a humble request can you make video on how to start buying to let or sell property. Do we have to have some sort licences??

The promoted stratergy of refinancing always forgets the increasing CGT liability

Hi, Jamie. Your video's are great, and really helpful. Could I please ask you two questions? 1) I currently pay 40% income tax and have owned a house on my own for the last 7 years, whose value has increased by about £200k. My partner and I want to buy another home as a couple quite quickly, and can't wait for my own property to sell, so we're going to remortgage to a let-to-buy, in order to raise a deposit for the second home. This means we'll effectively have two homes, and when I come to sell the first home I'll presumably have to pay CGT at 28%, as well as an additional 3% on the whole of the purchase price of the second home! If I set up an Ltd company in order to pay corporation tax of 19% on the profit of the house sale, rather than 28% CGT, will I only have to pay 19% on how much the house has increased by since it was incorporated into the business, or on how much it increased by since I bought it seven years ago? 2) Is there a time limit I can keep my first home, before having to pay CGT, if I don't set up a LTD company? I can claim back the additional 3% stamp duty on the second home if I sell my first one within three years. Does this also apply to CGT, as I think the 36-month rule has changed recently? Thank you

Great video 👍... What happens if you buy a property at say £100k (£75k BTL interest only mortgage) as it increases value over the years you re mortgage to the maximum 75% each time meaning when you sell the property for £200k, you have a £150k mortgage to repay. Am I right I’m thinking you pay capital gain tax on the £100k difference between original purchase price and sale price. The mortgage amount has no impact.

What happens if the property is a jointly owned. Will the two owners be able to subtract £24,600 from the capital gained based on the capital gains allowance for the two them ?

18% CGT on any profits above 12 grand. That's actually the same amount of tax applicable to our regular salaried income... depending on threshold. What if one has a regular paying job and then rental property as a side investment. Are taxes higher in this case?

Hi Jamie what are you thoughts on buying an ex-council house? Is there slower capital growth or even a potential ceiling to growth as people may be willing to spend only so much on an ex council house? Cheers matey.

Hi Jamie, thank you for your video, it is very informative. Someone I know keeps seller their own home and keeps making a profit, does that mean, they never have to pay tax on the profit they make? Could you or someone comment on this and confirm this for us please? Many thanks.

I think there was a number of areas where things got a little confused from a tax perspective. Also, and fairly fundamentally, you mention Business Asset Disposal Relief on the sale of shares in a company. This relief is only available if the company is a trading a company. A property investment company is not a trading a company and a sale of shares will not qualify for BAD relief. Also, bear in mind that the 19% CT rate will not be available to property investment companies under the new rates regime. Property investment companies will pay CT at 25% on profits made and gains on sale.

UK rental are to be capped this year large rent reduced new thinking

Is there no tax implications at the point it transfers from personal ownership into the company? Is it not done at the new increased value?

I have? Haveing few properties I am being taxed on the rent is ther any loop holes to reduce it

Hi, what happens if I buy my first home say at £90,000 do it up and in 5 years times it’s worth say £150,000. Now I want to move and buy a new personal home and remortgage this home as a let. Would I have to pay CGT in the future say if I sell it for £180,000 a few years after that on the whole £90000 increase as it wasn’t my personal residence at the time? In this case can I ‘sell’ the house to my own company when I move out the first time then the cg would only be £30,000 under my company during the time I was a let.

Hi, my main and only residence home is in Spain (I hold a residencia for 2.5 years), which I am selling to finance a new main residence in the UK. Will I have to pay Spanish CGT, has I will be paying uk 'Stamp Duty' for my new UK residence?

Hi Jamie, Is there a way you can be gifted £100k without the 7 year inheritance tax rule? Thanks

have one residential property and if I make that let to buy and buy another residential property. Do I have to pay 3% surcharge in the new residence property that I buy?

Jamie, could you pull money out of a property tax free if you refinanced it instead of selling, eg if you bought a house for £100k 75%LTV and say 5 years later it was worth £200k and you refinanced @75% LTV again you could take £50k out (not including costs for simplicity)? If you then sold it on a year later your progit for CGT would also be less, wouldn't it?

20:18 min.Could you please elaborate more about selling property owned by company, from example I understood that you are selling part of company as you paying capital gain tax which is pai by an induvial person not applies to company

All buy to let 40% down pluss capped rent

Im a bit confused im thinking about buy to let, so if i buy a property to let, and sell for retirement whenever i decide to.. So, for example, if I buy a house for 200k and rent it out for how ever many years and when I decide to retire, it's worth 350k. Do I have to pay 150k in capital gains tax?

If your a freeholder of a property then split the property into 2 flats. Do you pay capital gains tax.. Is this considered disposal of asset.

If I buy a Ltd company, with three houses in it, when I want to sell up, I’d have to sell the co. With three investment properties together to one buyer? How would I go about doing this as I want to sell all three houses in about three years time.

How long do you have to live in a house before it’s considered personal?!

Scenario: I buy a property at £100k with £25k deposit on interest only. Skip 10 years the house is worth £150k and remortgage it to £112.5k to leave 25% in and take out £37.5k tax free equity to keep renting with more lending but higher rent coming in. Do I pay CGT from the original amount from £100k to £150k or is it from £112.5k to £150k? Thanks

so basically it depends on your tax band?

Interesting that the allowance was supposed to be frozen! It actually is halving tomorrow to £6,000 only. And then £3,000 LOL sad times

T-DOG! LOL

If I transfer my properties to a company do I have to pay CGT

You're a handsome guy with a million dollar smile.....

11:05 it bothers me a lot when he draws a square or house and does the bottom right corner so long and pointy

Apg

I purchased a house for £61k to live in 2020. Sold in 2022 for £120k. It required alot of work hence why it took long to do up. Spent around £20k doing it up. Made around £40k profit. I changed my mind and did not live in the property I ended up selling it as I didn’t like the area. I did not live in the property for long (maybe 1 week max, none of my documents were transferred over to this house) I don’t own any other properties and live in my mother in laws house. Am I liable to CGT ?

2:15 I thought they dropped it to 6k then to 3k next year?

I changed entire tiles in my house. Can I claim tax relief ?

I don't understand your comment at 13 mins... why are you "paying" 20% tax, why isn't it 18% as it's capital gains? What am I missing?

Isn't the explanation of bands at 3m40s wrong? If you"ve an income of £20,000 and the 40 percent band starts at £50,000, and you have a £212,500 gain, the first £12,500 is tax free, the next £30,000 is taxed at 18%, and the remaining £170,000 is taxed at 28%. That's my understanding from the .Gov online CGT calculator and worked examples online. This situation will arise if a property is bought for £50,000 in 1990, rented out for 30 years and sold today for £262,500.

People having property portfolio's and renting to lot's of people is what drives up house prices. If there was a regulation banning large portfolio property businesses it would drive down the price of property and would mean way more people could afford to be home owners. Complaining about paying tax on multiple home ownership profits is so ignorant. Good for you, you're making the most of the system we have, but as someone who wants to be a 1st time buyer, listening to you talk about how to avoid paying taxes on the business model that makes it more expensive for everyone to buy a home is infuriating. And not that I'm in favour of loads of social programs, but all of them are funded by tax, that's the NHS, public schools etc, all underfunded and tax laws are what are put in place to try to pay for them.

✍ dont die

Capital gains tax is a hoax - You made no money when you buy a house for $50,000 and re sell it for $100,000 20 years later, you have literally gained nothing. The only thing which that money can now buy, is a similar market related house, it's not as though you are now in a position to buy a house that is double the size. Inflation kept track and you are expected to pay gains tax on an inflated value. You have scored absolutely nothing.