Beach Huts & CGT

Beach Huts & CGT

“Beach Huts”

Do I have to pay CGT?

Firstly, CGT strikes fear at the mere mention of it.  If you’re not familiar with the term, the acronym stands for Capital Gains Tax.   I took a number of calls in January 2022 from previous sellers who were filling in their Tax Return asking, ‘Do I have to pay CGT on the sale of my Beach Hut?’ I’m not a Tax Expert, and therefore unable to answer this question.  However, ask your Accountant, and he, or she, will be totally at home dealing with such queries.  Your Accountant may even have a dedicated team of CGT experts who will be able to answer your questions about this, and other, taxes.

Is CGT applicable to Beach Huts?

Everybody’s individual circumstances are different when it comes to taxation.

When you dispose of an asset, CGT liabilities can arise when there has been an increase in value since it was acquired.  Let’s consider some of the items which you may pay the tax on.  Whether the asset was sold or gifted, a CGT liability may still arise.

Accountants and Tax Advisors are able to advise on how to report and pay CGT liabilities, as well as reducing or delaying CGT liabilities as far as possible.  Therefore, your first port of call is your Accountant or Tax Advisor.

Tax specialists understand the numerous tax reliefs available to reduce CGT liabilities.  They must also understand the individual and the transaction fully to be able to recommend the best available option.

Have you sold your Beach Hut?

Here are my Top Tips when it comes to selling your beach hut:

  1. Before selling, check your (potential) liability with your Accountant/Tax Advisor
  2. Make sure you have your documentation in one place should it be asked for (Annual Licence Fees, repair and maintenance invoices, insurance statements etc)
  3. Keep all details of your sale (e.g. dates, terms agreed, price paid, buyer’s details) together with 2. above

Callaways can help with all aspects of selling your beach hut (apart from CGT).  Do get in touch if you’re thinking of putting your ‘property on the prom’ on the market.  Callaways have a successful record of selling beach huts over many years.  Contact or call 01273 735237