Getting rid of a rental property can seem like a tax minefield, with many complicated rules that can take a big bite out of your profits. Those selling a buy-to-let are charged capital gains tax on any money they have made on their property, but there are legal ways to reduce how much you pay. Here we look at the best options.
Remember to use all available reliefs
When selling a buy-to-let, owners are able to offset a number of costs against their CGT bill. These could include estate agents’ and solicitors’ fees, stamp duty when purchasing the property as well as surveying and valuation costs and money spent on home improvements such as an extension.
Someone who had made £15,000 in capital gains and spent £5,000 on a loft conversion, for example, would not have to pay any tax as that would bring the total gain to less than a person’s annual allowance (£12,300).
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