In 2017 the average seller sold their home for £92,466 more than they paid for it, having owned the home for an average of nine years, according to Hamptons International research.
This is up from the £90,227 which the average seller in England and Wales made in 2016.
With the exception of London, sellers in every region saw bigger gains than in 2016. Despite this, sellers in the capital gained an average of £252,196, over three times more than the average seller outside London. One in three Londoners who sold their home did so for at least twice what they paid for it an average of 8.8 years ago.
Of course if you are selling your primary residence that you live in then there is no capital gain to pay. You’ll automatically get a tax relief called Private Residence Relief. If you don’t meet all these criteria you may have to pay some Capital Gains Tax. Married couples and civil partners can only count one property as their main home at any one time. The rules are different if you sell property that’s not your home.
My advice would be take advice. A good accountant like our preferred adviser, Samantha Rolllins, at Trinity Accountants would be a good place to get advice regarding you tax planning and liabilities.
Of course there are then ways of reducing your tax liability by investing the net profit that you make. There are various tax efficient ways of investing monies made from a property asset. Speak to an expert like Matthew Green at Clifford Charles Wealth Management for the best advice. Matthew is our “go to” expert for savings, pensions and investment advice.
For anything property related please call or email me at any time, we’re here day and night to answer your property questions and help solve any problems you may be experiencing with tenants, developing, selling or letting a property.
Thanks to propertyreporter.co.uk for the original article.