If you’re thinking of selling a rental property, the next five weeks could be the most expensive of your investing life.
On 28 October, the Chancellor delivers the Autumn Budget. Capital Gains Tax is firmly in the spotlight, with reported proposals to raise rates as high as 45%. (1) Today, a higher-rate taxpayer pays 24%.
Here’s what that gap could mean:
£50,000 gain: £12,000 tax today – up to £22,500 if rates rise
£100,000 gain: £24,000 tax today – up to £45,000 if rates rise
£200,000 gain: £48,000 tax today – up to £90,000 if rates rise
That’s over £2,000 of extra tax for every £10,000 of gain.
And there’s no guarantee of a grace period. At the last Budget, CGT rates rose on Budget day itself.
For Capital Gains Tax, what normally counts is the date you exchange contracts, not the date you complete. At auction, contracts exchange the moment the hammer falls.
Edward Mellor’s October auction takes place on 21–22 October – a full week before the Budget. If your property sells and the reserve is met, you’ll have a legally binding sale in place before any change can take effect.
The deadlie for entry into our October auction is Monday 12th October. Every day you wait is a day less to prepare your property’s legal pack and marketing, so be sure to contact our friendly, profession auction team to book your free property appraisal today.
BOOK YOUR FREE AUCTION APPRAISAL
Or call our auction team today on 0161 826 4649.
Don’t let a decision in Westminster decide how much of your profit you keep.
Sources
(1) Could an increase in capital gains tax help tackle the cost of living?
This article is general information, not personal tax advice. Tax rules and auction availability should be checked at the time of publication and before any sale.
Related Pages
21st-22nd October Auction | Book an Auction Appraisal | Auction FAQs | Auction
