What is Capital Gains Tax (CGT)?

Capital Gains Tax (CGT) is tax paid on the profit when selling an investment property. for individuals, rates are 18% (basic rate) or 24% (higher rate) on residential property gains. limited companies pay corporation tax rates on capital gains. various reliefs and allowances may apply. For limited company HMO investors, this tax relief can significantly reduce tax liability when properly claimed against qualifying capital expenditure on furnished HMO properties.

When applying for limited company HMO mortgages, lenders may consider how capital gains tax (cgt) affects your net rental income calculations. Specialist lenders familiar with tax-efficient structures can offer products tailored to investors utilising capital gains tax (cgt) effectively.

It's essential for limited company HMO investors to seek professional tax advice to maximise available capital gains tax (cgt) and maintain HMRC compliance. An experienced property accountant can help structure investments to optimise tax efficiency while ensuring all claims are properly documented.