Own a home in the UK but don’t live here? New rules mean Capital Gains Tax will be due if the property is sold.

As of last month, new legislation means that if a landlord lives overseas, but owns a property that is rented out in the UK, Capital Gains Tax will now apply to the sale of that property.

Previously, overseas landlords could sell residential property in the UK without incurring any charges, but as of the 6th April, any gains in the value of that property will incur the tax.

The best strategy for any landlord that lives overseas, is to ensure a professional valuation is undertaken on the property as quickly as possible. All tax will then be calculated from the point of the valuation, with tax charged on any increase incurred between the valuation and the sale.

If landlords don’t act now and get a valuation, the total gain over the whole period of ownership is most likely to be used to calculate the tax, which could result in a very hefty tax bill.

Given how well the York property market has performed over the last 5 years, the majority of homes let out here in the city will have increased in value by approximately 12.5% over that timeframe, according to land registry statistics.

The most sensible approach for any landlord living overseas, even if they don’t plan to sell their property in the near future, is to get a property valuation now.

Our friendly and professional sales manager Duncan Campbell can provide a free valuation, just email him at Duncan@sellersofdistinction.co.uk or call 07720676949.

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