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How To Reduce Capital Gains Tax When Selling A Property?

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When it comes to selling a property, one of the biggest concerns for many people is how to keep more of that hard-earned profit in their pocket. Nobody wants to hand over a big chunk of their sale proceeds to the taxman, right? That’s where understanding how to reduce your Capital Gains Tax (CGT) comes in handy.

Picture this: you’ve owned a lovely little flat in London for the past few years, and you’ve decided it’s time to sell up and move on to pastures new. You’ve put a lot of work into the place, and you’re excited to see a tidy profit on your investment. But then it hits you – you’re going to have to pay CGT on that profit. Ouch.

But fear not my friend – there are some clever little tricks you can use to keep that CGT bill down. Here are a few of my favourites:

1. Make the most of your annual CGT allowance. As of the 2023-24 tax year, you can make £6,000 in capital gains before you have to start paying any tax. So, if your profit on the flat sale is less than that, you might not have to pay any CGT at all. Result!

2. If you’re married or in a civil partnership, consider transferring some of the ownership to your other half. This way, you can both make use of your individual CGT allowances, potentially doubling the amount of profit you can make tax-free.  However, the capital gain tax allowance will be reduces to £3,000 in 2024-2025!

3. If you’ve been living in the flat as your main residence, you might be able to claim something called Private Residence Relief. This handy little relief can either reduce or completely wipe out your CGT bill, depending on how long you’ve been living there and how long you’ve owned the property.

4. If you’re feeling generous, you could always consider gifting a portion of the property to your children or grandchildren. As long as they’re over 18, they’ll be able to make use of their own CGT allowances when the property is sold, again potentially reducing the overall tax bill.

5. Finally, if you’re planning on buying another property with the proceeds from the sale, you might be able to claim something called Business Asset Rollover Relief. This allows you to defer paying CGT on the sale of your commercial property, as long as you reinvest the money into another qualifying asset within a certain timeframe.

Of course, everyone’s circumstances are different, and what works for one person might not work for another. That’s why it’s always a good idea to have a chat with a qualified tax advisor before you make any big decisions. They’ll be able to take a look at your specific situation and give you some tailored advice on how to keep that CGT bill as low as possible.

So, there you have it – a few simple tips to help you keep more of your hard-earned cash when you sell a property. Whether you’re a seasoned property investor or a first-time seller, understanding how to reduce your CGT bill can make a big difference to your bottom line. And who doesn’t want a bit of extra cash in their pocket to splash out on something fun?

How to reduce capital gains tax when selling a property
Of course, everyone's circumstances are different, and what works for one person might not work for another.

Selling Your Commercial Property Fast: Do You Really Need an Agent?

When it comes to selling your property, you’ve got a couple of options on the table. You could go down the traditional route and list your place with an estate agent, or you could consider selling to a company like Property Saviour. Now, I know what you might be thinking – why would I want to sell to a company instead of going through an estate agent? Well, let me tell you, there are some pretty compelling reasons to consider Property Saviour.

First off, let’s talk about speed. When you sell through an estate agent, you’re at the mercy of the market. You’ve got to wait for the right buyer to come along, and even then, there’s no guarantee they’ll be able to get a mortgage or that the sale will go through smoothly. It can be a right old waiting game. But with Property Saviour, you can get a cash offer for your property within 24 hours. That’s right – 24 hours. No waiting around for months on end, no uncertainty, just a quick and easy sale.

But it’s not just about speed – selling to Property Saviour can also save you a ton of hassle. When you sell through an estate agent, you’ve got to deal with all sorts of time-wasters and tyre-kickers. You’ve got to keep your place spick and span for viewings, answer endless questions from potential buyers, and go through the often-complex legal process of selling a property. But with Property Saviour, you don’t have to worry about any of that. They take care of everything for you, from the initial valuation to the final sale. It’s like having your own personal property concierge!

And then there are the cost savings. When you sell through an estate agent, you’ve got to fork out for all sorts of fees and commissions. You’ve got the estate agent’s fee, which can be a hefty chunk of your sale price. You’ve got the cost of conveyancing, surveys, and other legal fees. It all adds up. But when you sell to Property Saviour, there are no hidden fees or commissions. You get a fair cash offer for your property, and that’s it. No nasty surprises, no unexpected costs.

Of course, I know what you might be thinking – surely I’ll get a better price if I sell through an estate agent. Well, not necessarily. While it’s true that you might be able to get a slightly higher price on the open market, you’ve got to weigh that up against the cost of waiting around for a buyer, the risk of the sale falling through, and all those pesky fees and commissions. With Property Saviour, you know exactly what you’re getting from day one – a fair cash offer that you can rely on.

So, if you’re thinking of selling your property, it’s definitely worth considering Property Saviour as an option. Whether you’re looking for a quick sale, a hassle-free process, or just want to keep more of your hard-earned cash in your pocket, we could be the perfect solution. And who doesn’t want a bit of extra cash to play with?

At the end of the day, selling your property is a big decision, and it’s important to weigh up all your options carefully. But if you’re looking for a fast, fair, and fuss-free way to sell, Property Saviour is definitely worth a look. Trust me – your bank balance will thank you for it!

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Property Saviour Price Promise

  • The price we’ll offer is the price that you will receive with no hidden deductions.
  • Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
  • These valuations or surveys result in delays and price reductions later on.
  • We are cash buyers.  There are no surveys.
  • We always provide proof of funds with every formal offer issued.
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  • No long exclusivity agreement to sign because we are the buyers.
  • You are welcome to use your own solicitor. 
  • If you don’t have one, we can ask our solicitors for recommendations.
  • We share our solicitor’s details and issue a Memorandum of Sale. 
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  • Our approach is transparent and ethical, which is why sellers trust us.
  • 100% Discretion guaranteed. 
  • If you have another buyer, you can put us in a contracts race to see who completes first.
  • Complete in 10 days or at a timescale that works for you.  You are in control.

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