Having a good awareness of capital gains tax (CGT) and the intricacies of its calculation can mean a significant tax saving when it comes to selling a property.
For example, should a married couple own a property, and either one of the couple is unemployed, it may be beneficial to change the ownership shareholding in favour of the non-income earner, for example in a 75%/25% split. When the time comes to sell the property, the greater portion of the tax burden will become the non-income earner’s responsibility and in most cases will fall below the tax threshold - which means that no or little capital gains tax will be payable.
We recommend keeping a record of all the relevant documentation relating to the property, including recording all improvements made to it over the period of ownership. These improvements can then be incorporated into the tax calculation when you sell it, which will ultimately reduce your overall tax exposure.