It’s Tuesday! Let’s talk Tax!
Read this week’s short tax snippet for Doctors & Dentists, to help you save money and get more organised with your tax affairs. It’s just to give you a flavour – take 5 minutes to have a read.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. The Financial Conduct Authority does not regulate tax advice.
Principal Private Residence Relief for CGT
If you can demonstrate your property is, or has been, your Principal Private Residence then any gain made from a sale will be exempt, or part-exempt, from Capital Gains Tax (CGT).
For sales where the property was partly lived in as the principal home and partly not, the tax will be apportioned appropriately.
It helps to work with an accountant to ensure you pay the least tax possible, as there are generous tax reliefs available for CGT, but it is important to get the allocation right.
When a property sale is straightforward, as in it is your sole property and clearly your only residence, usually there is very little that needs to be done if you make a gain on a sale.
However, if you own several properties and allocate one as your principal residence, HMRC may require you to provide evidence of your permanence of residing in the property.
Things like electricity consumption can be evidence enough of whether a property has or hasn’t been lived in during specific time-frames. As can other utilities and permanence of occupation.
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