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Tax On My Property Sale: All Requirements for UK landlords

Tax on property sale - UK landlords

In this post, we will guide you on Tax Tips on Property Sale and how to pay the tax on property sales. You won’t receive a Capital Gains Tax statement if you qualify for an exemption. You have to determine if your overall gains are greater than your tax-exempted allowance.

In case you sold your primary residence you might be eligible for a tax waiver.

Tax Tips on Property Sale

If you’re thinking of selling your property in the near future. there are a few things you’ll want to be aware of. First of all property sales are likely to result in some form of tax bill  whether that’s local council tax, stamp duty or income tax. And since different properties will incur different taxes. it’s important to do your research and ensure that you’re paying the right amount. Read our Tax Tips on Property Sale To Save Your Money.

When to file and make payment:

By the due date you must file capital gains paperwork and make any required payments.

Date of transaction (or “selling”)

When you have to convey a report and make a payment

Assuming the sale of your property in the UK was completed during or after the end of October 2021.

Inside of 60 days.

Assuming the sale of your property in the UK was completed during or between the 6th of April 2020 and the 26th of October 2021.

Inside 30 days.

Assuming you have additional gains to share

Assuming you file a Self Assessment tax paperwork, in the tax year proceeding with the sale of a property. Also if you qualify, you might be able to file paperwork before December 31 of the next twelve months after the sale using the “real-time” Capital Gains Tax program.

Do not postpone reporting earnings on UK residential real estate sold after 6 April 2020 till the next tax year. Assuming you do, you can be subject to interest charges and penalties.

Assuming you don’t live in the UK: even though you don’t owe any tax on any sales of domestic or non-domestic real estate or property in the UK, you still need to record them if you don’t live there.

How is the tax calculated On My Property Sale?

Determine whether you require to pay.

Assuming your entire taxable profits are greater than your yearly Capital Gains Tax waiver when you sell real estate, you must make payment of capital gains tax.

  • Calculate your whole taxable earnings.
  • Calculate the earnings for every real estate (or your portion of the property in case it is owned collectively). Conduct that for all the personal belongings, stocks or other assets, UK real estate, or corporate assets you sold during the 12 taxable years.

You should combine the profits from all the assets and add them up.

Subtract any permitted losses. Starting from 6 April to 5 April of the next year is the tax year. In the situation that your taxable earnings exceed your exemption, you must report them and make payments for capital gains tax.

Assuming your entire gains are below the tax-free exemption

If your total taxable gains are less than your capital gains tax allowance, you do not have to pay tax.

If both of these below scenarios are true, you must still record your gains on your tax paperwork.

The aggregate value of the assets you were selling exceeded four times your exemption. The procedures for reporting a loss vary.

Assuming you don’t live there.

Even if your earnings are below the tax-free exemptions or you incur a loss, you must still inform HMRC when you sell real estate or land.

Other capital gains are exempt from taxation for non-residents.

How to avoid Capital Gain Tax on Investment Property?

Assuming you sell an investment real estate, you probably will not be able to free yourself from paying capital gains tax (CGT), but there are some methods to reduce the sum of CGT you will have to pay when you sell the investment real estate for a profit.

The property tax can be reduced in these scenarios, by using your tax-free exemption:

  • Purchasing a property in combined ownership with your spouse, Reducing related expenses, 
  • Forming a limited liability company,

You can reduce the amount of capital gains tax you pay on property sales that aren’t your main home by checking if you qualify for a private residence waiver.

Thus, adhering to the regulations governing capital gain tax and investment real estate is the greatest method to reduce your capital gains tax payment.

It may be preferable to obtain professional tax strategy advice and assistance on how to reduce the effect of CGT on the sale of investment property because the laws around CGT can become fairly tough to understand. For those who have to pay basic-rate income tax, the sale could push them into the higher rate tax level.

What happens if I sell my property before I have paid all of the tax due?

If all of these apply, you don’t owe capital gains tax after selling your home:

  • You only own one house, and throughout the entire period residing.
  • It was in your ownership in the past.
  • You’ve lived there as your primary residence without renting out any spaces. It does not consist of having a lodger.
  • You haven’t used a certain area of your house just for work (using a place as a part-time office or using it as an office for some time, does not count as exclusive business use.)
  • You didn’t purchase it purely for financial gain because the property’s covered area, consisting of all buildings, is less than five thousand square metres, or just above an acre).


Tax Tips on Property Sale: Maintaining records of your real estate taxes assuming you are a landlord and ensuring you are paying the correct sum each year is necessary. It may be a tough task, but happily, there are Tax experts at We Save Property Tax who can advise you. thus you can complete this task conveniently. Discover the real estate planning alternatives available to property owners and how a Chartered Tax Advisor or Chartered Certified Accountant can provide you guidance on reducing your tax amounts from our renowned company.

We gave you instructions on how to pay the tax on real estate sales in this post. No Capital Gains Tax statement will be sent to you if you qualify for the exemption. You must assess if your total gains exceed your tax-exempted allowance. If your total gains for which tax is due are greater than your allowance. you must disclose and pay capital gains tax. You can be qualified for a tax exemption if you sold your primary residence.

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