Hi, for Capital Gains tax purposes, each individual has a yearly tax allowance of £11,100. Hence, you would have to pay tax on £38,900. I hope this assists and answers your question. Kind Regards Al
Hi, I do apologise- I did mean £28,900. Are you a higher rate tax payer? Kind Regards Al
Hello my name is ***** ***** I will help you with this.
Mortgage arrears does NOT come off. If you are working as that counts towards your allowance.
You are entitled to: £11,100 tax free.
Therefore on £40,000 tax is payable minus £11,100 on £28,900 of profit.
The rate you then pay depends if you are working. Whatever you earn plus this £28,900 profit goes towards your total income figure.
So if you earn £10,000 a year, the £28,900 is added so total income would be £38,900 for the year.
You pay 18% tax on the profit for the house up to income bracket of £43,000
Then you pay 28% tax on any amount thereafter.
Can I clarify anything for you about this today please?