Taxation in relation to property is complex and needs expert guidance to ensure the impact.

A person who lives in their property as their main residence, known as their “principal private residence” is usually not liable for any tax upon the sale.

Second homes or those that are held for investment purposes attract tax.

The most immediate tax that they will attract is Capital Gains Tax.

Capital Gains Tax as the name suggests is levied on the gain made from the date of acquisition to the date of sale.

Currently there are two rates of Capital Gains Tax, 20% for individuals and 28% for Trusts.

In order to calculate the amount of the gain, in simplistic terms, it is the difference between the value when acquired and the value at sale.

Occasionally a property is sold that has been inherited and no formal valuation was undertaken at the date of inheritance.

We at The Estates Office, undertake many historic valuations in order to establish the base value and would be happy to provide this service if required.

A further tax which applies to property is Inheritance Tax, which is a complex tax and applies to all properties whether residential or commercial, upon the death of the property owner.

The current exemption from Inheritance Tax is £325,000 per individual but there are exceptions on release which mean that the exemption can increase to £1m, however expert guidance is required.

The Estates Office undertake many valuations for Inheritance Tax purposes, either directly to individuals or via their professional advisors and if you require any information or assistance in this regard, then please do contact us and we will be delighted to assist.

The current rate for Inheritance Tax over the threshold is 40%.

Other taxes that apply to property are Income Tax and Corporation Tax which are complex in terms of allowable expenses and reliefs and expert advice should be sought from your tax advisor or accountant.