Although you might have come across the term capital gains tax also known as CGT, there are misconceptions about it. Capital gains tax isn’t a distinct tax but is also a part of income tax. CGT is usually taxed at a lower tax rate than the ordinary income. This could be at 18 or 28 percent depending on your overall income.
CGT is typically a tax on the resell of properties. Any person who sells or disposes of their Property will be liable to CGT excluding their main residence. Everyone in the UK is entitled to one tax free residence and married couples can elect one residence to be tax free. When you have not occupied the main residence for the whole period, then a CGT calculation will need be done.
When submitting your yearly income tax returns any losses or gains incurred from transactions during that period have to be sent and declared. You can hire accountants to calculate your CGT tax returns before submitting them. You will need expert advise and guidance from capital gains tax advisers to benefit from PPR and Letting relief.
Methods of marketing your house
Having success in real estate highly depends on having great photos of the properties you are selling. Bad photos will only lessen interest even on the most exceptional properties. It’s of importance for you to have excellent pictures of your house or property so that they may sell faster. You can hire professional photographers who will take professional photos of your home, preferably you can get yourself a high-quality camera and take the photos yourself if you are good at photography.
Using social media platforms
You can use social media platforms for selling your house. Create social media accounts on Facebook, Instagram, Pinterest, and Google+. Take a lot of good photos and post them on the various accounts, interact with the users to promote your house.
Limit property showings and deadlines
Limiting your house showings only to one open house showing means that prospective customers will show up during the 3-4 hours’ deadline as that will be the only time that they get the chance to view the house. This almost guarantees that the open house will be filled with prospective clients. The more crowded your open house gets, the more chances that the house will be bought since every client thinks that the other client will bid. If the open house is viewed on a Saturday, you can extend the deadline of viewing and be receiving offers till on Monday in the afternoon.
Using real estate agents
You can choose to use real estate agents for selling your house. If you are based in the UK, you can choose estate agents in London. You can check all the agents reviews on google and enquire about their fees. Fees charged on the sale of a property, there are various fees which are incurred when selling a property. The selling fees could be between 1-3 percent on average. Being aware of the costs involved during the property transaction will help you plan your sale.
Is CGT payable on the property
CGT isn’t payable on individual property, i.e., your own home. It is only payable on a second property or a business. If you are a homeowner and you want to sell your home, you won’t have to pay CGT. But if you had moved from your home for more than eighteen months, you may be required to pay CGT.