What is Capital Gains Tax?

You are eligible to pay Capital Gains Tax when you sell a property which is not your primary residence. Capital Gains Tax can also be due when selling a business, land, shares or expensive antiques and jewellery. On buy-to-let property, tax is calculated on the difference between what you paid for the property and what you sell it for no matter how long you have owned the property. For example, if you buy a property for £100,000 and sell it for £130,000, you are eligible to pay Capital Gains Tax on £30,000.

Remember, you do not pay Capital Gains Tax if the property is your main home. Seek good tax advice before getting involved in buying property for buy-to-let purposes.

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