Tim Palmer looks at the considerable capital gains tax obligations placed on individual landlords when they make a capital gain from selling UK residential rented property.
Individuals who rent out a house or flat and then sell it, making a capital gain, are now faced with a very complex and demanding capital gains tax (CGT) regime.
They have to file a ‘capital gains tax on UK property return’ and also pay the CGT due within 60 days of completing the sale of the property. Trustees and personal representatives also have to comply with this regime, but not companies. This applies to gains made on the sale of residential, not commercial, property.
Who, what and when?
If a taxpayer owns (for example) a sports shop with a rented flat above it, careful consideration needs to be given to the capital gain on disposal. It is only the gain on the rented flat
