Your Guide to Capital Gains Tax
Tax isn’t exactly the most exciting topic in the world, but as a landlord, understanding your tax responsibilities is pretty important.
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Of course, not all tax is created the same, and this particular guide will help you navigate the intricate details of Capital Gains Tax (CGT). So, if you’re looking for more information on Capital Gains Tax, you’ve come to the right place.
What is Capital Gains Tax?
How does Capital Gains Tax work?
How much can I earn before paying Capital Gains Tax?
What are the Capital Gains Tax rates?
The tax rate you are expected to pay depends on the total amount of your taxable income and the marginal rate of personal tax. As a landlord, you need to work this our first. You can use the following as a guide to understand the rates:
- You pay 10% or 20% tax rates for individuals
- 18% or 28% tax rates for individuals for residential property and carried interest
- 20% for personal representatives of someone who has passed away (not including residential property)
- 28% for representatives of someone who has passed away for the selling of a residential property.
There you have it. A quick and easy guide to the basics of Capital Gains Tax. This topic can be a challenge to get your head round, so be sure to reach out to an expert for guidance and help to ensure you are paying the correct amount!