Should I declare capital gains on my residential flat as earnings having bought a buy to let?
Did you own more than one property before you bought the flat? Capital Gains and earnings are not the same thing. In a nutshell, earnings are what you receive money for in return for giving up your time working, and are liable to Income Tax and National Insurance. Capital Gains Tax is charged on the disposal (sale) of assets, whether the asset be property, shares or works of art. If you only owned the one property (and assuming that you lived in it) then it would probably have been what is called your “Principle Private Residence” (PPR). No Capital Gains Tax (CGT) will arise on the sale of it. If you now have a flat as well as another property, then it may well be the case that CGT will arise when you come to sell one or other property. You would be well advised to speak to an accountant when you decide to sell. There are some anomolies, so you could always call your tax office to get advice specific to your circumstances. The first link below will help you find your “local” tax office
