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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5028
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am planning to sell my second home in UK, please tell me

Resolved Question:

I am planning to sell my second home in UK, please tell me the tax implications
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

Please advise
- if you ever lived in this second home as your main residence or has it been an investment property all the time.
- if the property is in sole name or joint names?
- the likely gain on sale of property

Many thanks
Customer: replied 2 years ago.

I inherited the property and holidayed there

sole name

£100.000

Expert:  taxadvisor.uk replied 2 years ago.
Thank you for your prompt reply.

You are saying the likely gain on sale of this this property is £100,000.
Your chargeable gain after gains annual allowance of £11,100 will be (100,000-11,100) £88,900

Thsi will attract CGT at 18%, 28% or a combination of both depending on your taxable income including the gain in the year of sale.

If your taxable income before the gain is £31,785 or higher than the gain will be taxed at 28%

If your taxable income is say £20,785 then the first £11,000 of the gain would attract tax at 18% and the rest at 28%.

Worst scenario - CGT (88,900 x 28%) = £24,892

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

What is the gains allowance, is it based on how many years I have owned the property?

Expert:  taxadvisor.uk replied 2 years ago.
Thank you for your reply.

A gains annual allowance is against capital gains made in a particular tax year, similar to personal allowance one gets against income for income tax purposes in a tax year.

It is not based on the number of years you have held the asset but an annual allowance in the year of gain.

I hope this is helpful and answers your question.
Expert:  taxadvisor.uk replied 2 years ago.
I thank you for accepting my answer.

Best wishes.