Getting your money isn't the end of the story - you have to pay capital gains tax, too.
The value and state of the property will usually be checked by your buyer. Their mortgage lender will organise a valuation to establish that there is sufficient security against the loan they are offering. The buyer may well arrange for a survey to be carried out to check the condition of the property. If this shows up any problems, your estate agent will advise you if you need to lower your price to continue with the sale; fix the problem and then remarket the property or arrange for a specialist report to assess the seriousness of the condition. Check out the RICs guide to understanding surveys so you know what to expect. Also, see our feature on Planning and Surveys.
Completion is when the transfer of ownership passes from the seller to the buyer – and you get your money. You will receive from the buyer via your solicitor the outstanding balance for the sale of your property, less any fees and your mortgage repayment.
If your property is not your main place of residence you are liable to pay capital gains tax (CGT), although you are allowed to make a capital gain a percentage of the profits (£9,600 in the 2008/2009 tax year) before you are liable to pay CGT, and you may be entitled to claim relief against some or part of the gain which could include deductions of some of the costs of selling. Any gain above this limit is charged at different rates depending on your circumstances (although not more than the top rate). CGT rules can be complex and you should seek professional advice when working out how much CGT you’ll have to pay.
A professional property developer has to pay income tax on the profits. Help sheets are available covering all these tax issues on the government's website. Developers wanting to know about the allowability of expenses should contact their local tax office.
Phil & Kirstie On Finding An Area On The Up
House Price Crash: How To Bag A Bargain
Property Types To Beat The Crash
Check out the mortgage calculator, loans, credit cards & savings comparison tools
Tell us about where you live, & see if your area makes the top (or bottom) 20
Compare current rates on loans, savings accounts, credit cards & mortgages with this handy tool.jpg){kind=small}
Our presenter could be popping round to your house for a consultation and a cuppa
.jpg)
Your Comments
Post your comment
Please note: In order to post a comment you need to be registered and logged in to Channel 4:
Sign In Here or Register Here
Comments closed
Comments are closed at the present time
Comments
Thank you for your comment!
Your message will be reviewed and the best ones will be published below.
If you intended to make an official comment to Channel 4 please contact us.