I took a call from a worried man yesterday. A very worried man. He is busy selling a house and his solicitor rightly spotted that he might have an issue with capital gains tax because it has been rented in the past.
If you sell a house that hasn’t always been your home there is usually a capital gains tax calculation to be done and a report to be made. It needs to be made within 60 days of sale and is done within a completely stand alone reporting system through HMRC.
This chap had spoken to a family member, an accountant that works in industry, that helped him to work out rough numbers before we spoke. He was bracing for a £30,000 tax bill.
The actual bill? Less than £5,000. A staggering difference.
The moral of the story is one most of you already know but it’s worth repeating. Tax advice more often than not saves you money.