Selling Residential Property

We are often asked about the best time to sell residential property particularly if it is subject to Capital Gains Tax.

If you have more than one property to sell, consider selling one before and one after 5 April to get the benefit of the Annual Exemption. Given that this is being slashed, it is not the benefit that it once was. However, if you are an individual rather than a company, you may benefit from being able to use some of your basic rate band and so pay a lower rate of CGT on at least some of the gain.

If you sell residential property and CGT is due on the sale you must file a 60 day report and pay the tax within 60 days of the sale, which is a tight deadline.

However, if the sale is at the end of the tax year, say in March, and you can file your personal self-assessment tax return within that same 60 day window, you do not need to file a 60 day report or pay the tax within 60 days. The tax is only due on 31 January following the tax year, along with your normal self-assessment taxes. Less paperwork and a cash flow advantage.

The trick is to get your self-assessment tax return filed as soon as possible after 5 April.



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