Selling a Rental Property in Rugby or Warwickshire? Don’t Miss These Capital Gains Tax Tips

Selling a rental property can trigger a sizeable Capital Gains Tax (CGT) bill. But with smart planning, landlords in Rugby and Warwickshire can significantly reduce their tax liability.

Here are the key tips to keep more of your profit.

1. Understand Your CGT Rate

For residential property:

• 18% (basic rate band)
• 24% (higher/additional rate)

Planning your income for the year of sale can reduce the tax band you fall into.

2. Deduct All Allowable Costs

You can reduce your gain with:

• Solicitor fees
• Estate agent fees
• Stamp Duty from purchase
• Capital improvements (not repairs)
• Replacement of kitchens, bathrooms, windows etc

We help clients identify every allowable deduction.

3. Transfer to a Spouse Before Sale

If your spouse is in a lower tax band, a no‑gain no‑loss transfer could save thousands.
(But only if done before exchange of contracts.)

4. Use Your Annual CGT Allowance

The CGT allowance is now only £3,000, but using both spouses’ allowances can still save tax.

5. Consider Timing the Sale

Selling across two tax years—or lowering other income—can reduce your overall tax rate.

6. Watch Out for 60‑Day Reporting

Residential property sales must be reported and paid within 60 days of completion.
Late submissions mean penalties.

7. Think Long-Term: Owning Through a Company

Future purchases or portfolio restructuring may be more tax‑efficient in a company, depending on:

• Mortgage interest restrictions
• Income levels
• Profit retention
• Retirement planning

We help landlords evaluate this properly.

Final Thoughts

A property sale is a major financial event. With the right CGT planning, you can avoid unnecessary tax and maximise your return.

Contact Redwood Accountants for tailored CGT advice on your property sale.

‍