Sarah Bradford outlines how to calculate the chargeable gain arising on the disposal of a residential property.
The loss of tax breaks and increased rights for tenants have resulted in many landlords taking the decision to exit the market and to sell the buy-to-let or holiday home.
Gains on residential property have their own rules. Where a chargeable gain arises on the disposal of a residential property, that gain must be reported to HMRC within 60 days of the completion date. The gain must be reported through HMRC’s online capital gains tax on UK property service and the taxpayer must create an account for this purpose. The tax that is due on the gain must be paid within the same timeframe.
Calculating the gain
The tax on the residential property gain must be calculated and paid separately from other gains realised in the same tax year. The tax that
