Have you made any profits from selling your property? If you have, then you are required pay Capital Gains Tax on such profits. However, such tax is normally not charged on the gains made from your main home as it will be eligible for private residence relief (PRR).

In case if you own more than one home, you can elect any one of them to be tax-free. If you have let some part or whole home, a proportion of any gain made with the letting can be taxed when selling your home.

If you provide genuine details regarding your main home, you are able to claim tax benefit. This benefit can be claimed only for the time it was your main residence along with the last 18 months of ownership.

There is a letting relief available for reducing the Capital Gains Tax. Regardless of which you need to remember that claiming letting relief and private residence relief at the same period is not possible.

A private residence relief (PRR) and letting relief on the gain can be claimed if you have owned a property for 20 years and lived in it as your main residence for first 12 years and as a second home for the next 4 years and rented out for the final 4 years.

If your parents leave their home to you in their wills, you will inherit the property. You will get this property at its market value at the time of death. On this property, you will not be charged with Capital Gains Tax as it is not on death but inheritance tax will be charged instead.

You could be charged CGT if you the property without having made it your own home. Such tax will be based on the increase in value between the date of death and the date when you sell.

For more information on Capital Gains Tax, stay tuned for more blog posts.