Capital Gains Tax (CGT), the levy on profits from the sale of assets such as second homes, is undergoing changes. The Spring Budget revealed reduced rates for second homes and rental properties starting in April 2024.
The higher rate of CGT has been reduced from 28% to 24% and the lower rate of CGT has been maintained at 18%. It’s worth noting that CGT is not payable on your main home, only on second/holiday homes.
The threshold for CGT is shrinking too. Slashed from £12,300 to £6,000 in April 2023, it has now fallen to £3,000. Your CGT liability hinges on the assets sold and your Income Tax bracket when profit is factored into your taxable income.
🚨 Data accurate as of the date of publication – 21.06.2024
🚨Tax treatment varies according to individual circumstances and is subject to change. Advice on Capital Gains Tax
and Taxation Advice is not regulated by the Financial Conduct. Some buy to lets are not regulated by the Financial
Conduct Authority.
🚨Information within this blog is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed.
🚨Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.
Source: Quilter Financial Planning – Essentially Mortgages Q2 2024
