Here’s What Landlords Selling Up Need to Know About Tax

If you're a landlord considering selling your rental, you could face a big tax bill.

Here are some things you need to know about Capital Gains Tax (CGT) and selling a buy-to-let.

• You pay CGT on the gain you make on selling an investment property, including a BTL.

• That gain could be significant if you've owned a property for some time.

• If you sell up through a limited company, you don't pay CGT. Corporation Tax applies to your company's profits.

• How much CGT you pay depends on your income tax rate.

• The current CGT allowance is £3,000 a year.

• You can deduct some costs related to buying the property from taxable gains, including Stamp Duty, conveyancing and surveys.

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This article does not constitute financial advice.