Definition
Exit CGT refers to capital gains tax assumptions when selling a property. CGT may apply to the gain after purchase cost, eligible capital costs and selling costs are considered.
How it affects a property deal
Exit CGT can reduce sale proceeds and final equity. This matters for flip strategies, planned disposals and long-term holds where final sale value is part of the modelled return.
What to check
- Ownership type: personal or company.
- Purchase price and eligible capital expenditure.
- Refurb costs treated as capital improvements.
- Selling costs and debt repayment.
- Current CGT rates and available allowances.
CGT treatment is fact-specific, so use Koreograph as an estimate and confirm with an adviser.