Capital Gains Tax in Manchester: A Guide for Property Owners
What Is Capital Gains Tax? Capital Gains Tax i s a tax on the profit made from selling an asset, such as a property. It applies to the "gain" or the difference between the property's purchase price and its selling price.In the UK, CGT is relevant for: Second homes or buy-to-let properties Commercial properties Land Your primary residence is usually exempt from CGT under the Private Residence Relief (subject to certain conditions). Key CGT Rates for Property Owners The CGT rate depends on your taxable income: Basic rate taxpayers: 18% on gains from residential properties Higher or additional rate taxpayers: 28% on gains from residential properties For non-residential properties or other assets, the rates are 10% and 20%, respectively. Allowances and Exemptions The government provides a Capital Gains Tax Allowance , which means you only pay tax on gains exceeding the allowance. As of the 2024/25 tax year, the allowance is £6,000 for individuals and £3,000 for trusts.Some...