Sarah Bradford explains when and how it is necessary to report a gain on the disposal of a residential property and pay the associated tax.
Not all residential property is equal when it comes to the tax treatment of capital gains.
Setting the scene
Where a property is sold or otherwise disposed of (e.g., given to a family member other than a spouse or civil partner) and a gain arises, there will be no capital gains tax (CGT) to pay if the property has been the owner’s only or main residence throughout the full period of ownership (or for all but the last nine months). If this is the case, the private residence exemption will shelter the gain from CGT.
However, for properties such as investment properties and second homes which have not been occupied throughout as a main home, there may well be CGT to pay if a gain arises on the disposal of the
