When selling a property, understanding your tax liabilities and position is important to ensure the costs and handled in your best interests.

Capital Gains Tax (CGT) has been set at a standard 18% since 2008 and applies to gains made from the sale of a variety of items including property (though not the main residence), or high value items such as jewellery and antiques. Note that CGT is payable only on the profit made, not the sale price.

There are a number of ways of avoiding CGT , though these typically involve just deferring the payment by transferring ownership to a husband or wife. And there are some exceptions, such as if the profit is less the £10,100 (for the tax year 2009-10), or you receive winnings from premium bonds, the lottery or gambling, or are compensated from a personal injury claim.

If you are selling a holiday home, it is recommended to source an accountant who specialises in this particular type of tax liability. They will be able to advise on your personal situation and the best way to manage the sale.

This section will look at tax liabilities in more detail.