Many people hold the view that when you sell your home you will not pay any tax particularly Capital Gains Tax on the difference between purchase and sales prices.
There are however situations when this is not true. For example, you may have to pay some tax if you have let out all or part of your house for a period of time during your ownership.
There is a restriction on the amount of land you can sell as part of your home/garden tax-free. This is 5,000 square metres (just over one acre). If you sell your home and retain part of the garden to sell at a later date, the subsequent sale of the land will attract a Capital Gains Tax charge.
If you have used part of your property exclusively for business purposes a tax cost may also incur when you sell your home. However, this would not include non-exclusive use, such as using a spare bedroom or study as a part-time home office.
Issues may arise if you sell your UK home while you are non-resident for UK tax.
If you are unsure of the tax status of your home for tax purposes call our office to discuss your options.