Capital gains tax (CGT) applies to profits from selling a buy-to-let property, with rates based on taxable income.
Basic rate taxpayers pay 18% CGT, higher rate taxpayers 24%.
If you sell a property and owe Capital Gains Tax you must pay it within 60 days of the sale, or risk penalties and interest charges.
Reliefs like Private Residence Relief (PRR), Letting Relief and allowable deductions can help reduce your CGT liability.
Setting up a limited company can lower tax exposure, with profits taxed at corporation tax rates instead of CGT rates.
Consulting your accountant or financial adviser can help with proper use of tax reliefs and strategies to minimise your CGT legally.
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