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If you sell, give away, exchange or otherwise dispose of property, certain tax reliefs can reduce your Capital Gains Tax bill. Property can include a building, land or a lease. Your property must meet certain conditions to qualify for these reliefs. Some reliefs are given automatically - you can claim others in writing.
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When you sell or dispose of your home you will usually be entitled
to Private Residence Relief. You don't need to claim this, you get it
automatically. It means that when you sell your only or main home, you
usually won’t have to pay any Capital Gains Tax.
Find out more about Capital Gains Tax relief on your own home
If you sell or dispose of a property that does not qualify for Private Residence Relief you must work out the gain or loss. For example, if you sell a buy-to-let property, agricultural land, farm buildings or business premises, these are liable for Capital Gains Tax.
There may be some additional Capital Gains Tax reliefs you can use if your property has been used for business purposes.
Examples of property which may be used in a business include:
If the property counts as a business asset the following reliefs may be available for Capital Gains Tax purposes.
All or part of your gain may be postponed if you buy another property or certain other assets for business use.
If you give away your property all or part of your gain may be postponed until the property is sold. In most cases the person you give it to will pay any Capital Gains Tax.
There's a maximum lifetime limit on the amount of Entrepreneurs' Relief you can claim on qualifying gains. The limit is:
If you're trading in property - for example you're buying and improving houses to sell them at a profit - you may be liable to Income Tax not Capital Gains Tax.