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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5112
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
Type Your Tax Question Here... is online now

hi I have a question about tax debts and CGT

This answer was rated:

hi I have a question about tax debts and CGT
Hello and welcome to the site. Thank you for your question.

What is your question... please expand

many thanks
Customer: replied 3 years ago.

Hi, I have a potential tax debt and an investment property I could sell to settle the HMRC debt. However what I want to know is if I sell the property would I still have to pay CGT on any increase? As essentially ALL of the proceeds would go straight to HMRC and I personally dont make any gain?

Thank you for your prompt reply.

You should separate the gain from sale proceeds.

CGT is payable on the gain you make when you sell the property or other asset chargeable to capital gains.

The fact you would be using the sale proceeds to clear potential tax debt would not take away or reduce any CGT liability you may have resulting from sale of that property, I'm afraid.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 3 years ago.

So HMRC have it both ways, thought so but wanted to check. Might be better off letting them just take it then! thanks anyway

Thank you for your reply.

I hope my clarification has been helpful.

If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get credited for it. and other Tax Specialists are ready to help you
I thank you for accepting my answer.

Best wishes.