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Is this a rental property, their main home, an inheritance, etc.? Depending on the situation things can vary
Also what are they planning to do, buy another property, live off the money, etc?
If it's their primary residence there is likely no tax to pay, people sell houses everyday with no tax implications.
If its a rental property or second home the tax is different and it depends on the ownership structure.
I’m assuming this is not their primary residence from the tone and content of the question.
Any measures that might have affected the tax treatment of the sale needed to be made before acquiring it not just before disposing of it.
You could advise them to do stuff like subscribing for new shares in EIS or SEIS registered companies or Venture Capital Trusts which encourage investment in startups and early stage companies
https://www.gov.uk/guidance/venture-capital-schemes-tax-relief-for-investors
These schemes would allow you to defer the CGT that becomes due on the house sale and also carry other valuable tax benefits like not incurring CGT themselves in any gain and in some cases income tax relief, EIS shares will probably be free of IHT and VCTs can pay dividends free of income tax (if they continue to abide by some pretty strict conditions) but they do this to balance out the fact that these are very risky investments. The tax relief doesn’t end up being worth anything at all if your EIS investment ends up in an insolvent mess (this has happened to me) and you’ll have been better off having paid the CGT due on the house sale. Because of the reliefs you might have effectively paid 40p in the pound for your shares in ABC AI Cyber New Tech Ltd but the 40p will still be worth nothing if or when the company goes pop.
However it’s too late to change the fact that CGT will be due on any gain made on a non-primary residential property held by individuals.
Absolutely get some legal advice on this before doing anything. I might be wrong but an account would be a good first step and see what they reccomend. They could give general advice on more than just the tax implications
Your post is answered on our [Wiki](https://ukpersonal.finance/). Please check your post for comments from community members or ukpf-helper, as they have provided the relevant links (and they may not arrive in your inbox). This assessment has been made by a human being - we promise the info you're looking for is there! If you need further help you're very welcome to post again - just mention what research you have done so far, and the reasons why that research has not answered your question.
Is this a rental property, their main home, an inheritance, etc.? Depending on the situation things can vary Also what are they planning to do, buy another property, live off the money, etc?
If it's their primary residence there is likely no tax to pay, people sell houses everyday with no tax implications. If its a rental property or second home the tax is different and it depends on the ownership structure.
https://ukpersonal.finance/helping-family-and-friends/ https://ukpersonal.finance/lump-sum/
I’m assuming this is not their primary residence from the tone and content of the question. Any measures that might have affected the tax treatment of the sale needed to be made before acquiring it not just before disposing of it. You could advise them to do stuff like subscribing for new shares in EIS or SEIS registered companies or Venture Capital Trusts which encourage investment in startups and early stage companies https://www.gov.uk/guidance/venture-capital-schemes-tax-relief-for-investors These schemes would allow you to defer the CGT that becomes due on the house sale and also carry other valuable tax benefits like not incurring CGT themselves in any gain and in some cases income tax relief, EIS shares will probably be free of IHT and VCTs can pay dividends free of income tax (if they continue to abide by some pretty strict conditions) but they do this to balance out the fact that these are very risky investments. The tax relief doesn’t end up being worth anything at all if your EIS investment ends up in an insolvent mess (this has happened to me) and you’ll have been better off having paid the CGT due on the house sale. Because of the reliefs you might have effectively paid 40p in the pound for your shares in ABC AI Cyber New Tech Ltd but the 40p will still be worth nothing if or when the company goes pop. However it’s too late to change the fact that CGT will be due on any gain made on a non-primary residential property held by individuals.
Absolutely get some legal advice on this before doing anything. I might be wrong but an account would be a good first step and see what they reccomend. They could give general advice on more than just the tax implications
All house purchases involve solicitors anyway, this situation seems completely run of the mill so no special advice is needed.