To Sell or not to Sell?
With the impending changes to capital gains on the horizon, lots of clients are asking for advice on whether they should look to sell their buy to let properties. Such a decision may be taken out of their hands if the proposed changes come in on budget day, but if they are delayed until the new tax year, what should you do?
Things to consider:
What would you do with the proceeds of a property sale? Putting the proceeds in a building society will not yield a high return, so what other savings options are available?
What return are you currently getting, could it be improved? If you plan to reinvest in say another property, think about the buying costs such as legal fees and stamp duty.
Also consider that many other people are also considering selling at the moment. This could lead to the market being flooded with similar properties, if so, how much could this affect the selling price of your property?
Before making a decision, explore all the CGT reliefs that maybe available to you. Although the tax rate maybe on the increase, there are still some CGT reliefs available such the principal private residents relief and letting relief.
Tax has a huge influence over decisions we make, as we all want to pay as little as possible. If you are currently facing the dilemma of sell or not to sell, please come and talk to us so we can run through all of your options.
Emma Thomas ACA FCCA CTA
