Residential Property CGT
Capital Gains Tax on gains from selling UK residential property that is not your main home, charged at 18% for basic-rate taxpayers and 24% for higher- and additional-rate taxpayers. Gains on main residences are generally covered by Private Residence Relief and are not taxable. UK residents must report and pay residential property CGT within 60 days of completion of the sale.
Related Terms
Capital Gains Tax
A tax on the profit (gain) you make when you sell or dispose of an asset that has increased in value, such as shares, investment property, or business assets.
Annual Exempt Amount
The amount of capital gains you can make in a tax year before Capital Gains Tax becomes due, currently £3,000 for individuals.
Business Asset Disposal Relief (BADR)
A relief that reduces the Capital Gains Tax rate to 10% on qualifying gains from the disposal of business assets, formerly known as Entrepreneurs' Relief.
Effective Rate
The average rate of tax you pay across all your income, calculated by dividing your total tax bill by your gross income.
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