We are selling a rental property and as such Capital Gains Tax (CGT) applies on profits. On 6th April 2023, the personal CGT allowance is being reduced from £12,300 to £6000.
Our sale is likely to complete around this date and with two owners, that means we potentially stand to pay CGT on an additional £12,600.
Somebody told me that the key factor in the date cut-off is when contracts are exchanged for the sale, rather than when the sale is completed. But I cannot find any information supporting or rejecting this claim. Can anyone give an evidence-based answer either way?