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Hi it is the capital gains tax sorry
Thank you Irene. What you may have to pay in CGT depends on a number of factors. You have to determine the gain which is the selling price less costs of sale and the property valuation as at the date you acquired it. Having determined that you have to work out the ownership time in months. From this remove any time during which it was your sole or main domestic residence and occupied by you. This proportion of the gain will be assessed for CGT. You have an Annual Exempt Allowance of 10K plus Lettings Relief up to 40K to deduct from the gain. The balance will be taxed at 18% or 28% depending upon your income level including the gain in the year of sale.
You can see that the matter is far from simple!
Hi Keith ,
I can see how complicated it appears but if my memory serves me I lived 40 months in the property from buying it in Dec 1989 til APril 1993 and the sale for flat with all monies exchanged on the 9 April just gone, my income would put me in the 20 percent bracket, I played in total about twenty thousand in estate agent fees and solicitors along with work I had done, the tax office would also have a record of my tax returns to go by, based on this information is there anyway you could give me even a rough idea of what amount I could be looking at?
Hi I bought it for thirty five thousand, and sold for 429200
Thank you for your support.
There was an error in my answer. The last 18 months don't count so only 112/140 is chargeable, sorry. This reduces the estimated taxable gain to 240K.