Do I Have to Pay Capital Gains Tax When I Sell my Property? When you sell a flat or house that is not your main residence, you will usually have to pay Capital Gains Tax. While you should not have to pay this tax when you sell your main home thanks to Private Residence Relief, you will be liable for it when you sell property that is considered to be an asset. Property that may Incur Capital Gains Tax If you are selling a house or flat that you bought as an investment, such as a buy-tolet, you will have to pay Capital Gains Tax. This tax is also usually due when you sell a second home, such as a holiday home. If you are selling a business premises, then this sale will also be liable for Capital Gains Tax. If your main home also contains a business premises, this could complicate matters and it is worth seeking the advice of a good estate agent or accountant about whether you will have to pay Capital Gains Tax on this sale. How Much Tax Will I Have to Pay? You do not pay Capital Gains Tax on the entire sales value of the property, only on the amount that is counted as gains. To work this out you must simply deduct your losses from your gains, which means taking away the amount that your property cost from the figure that you sold it for. You can also deduct the cost of any renovations you have made to the property along with estate agents and solicitorsâ€™ costs. Next, deduct your annual tax-free allowance of ÂŁ10,600 from your gains to calculate your total gains. Once you have worked out your total gains, you must pay Capital Gains tax on this amount at 28%. Giving Property Away to Children and Family If you give property to your child as a gift, you will still have to pay Capital Gains Tax on it as though you have sold it. In this instance, you will use the market value of the property in place of the sale price, and then deduct the same costs to work out the amount of your total gains. Again, you must pay 28% of this amount. If you are planning to sell a property in London, then Kubie Gold can help. We can also offer you advice on buying and selling a home or buy-to-let flat our house. Contact us now on 020 7563 7272 or email us at email@example.com.