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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15916
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I bought a property in Jan14 on a buy to let mortgage for

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Hi I bought a property in Jan14 on a buy to let mortgage for £130k, I am selling for £185, I am a basic rate tax payer. Can you please advise the capital gains consequences ?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Can you confirm that the property was never your main home, just let, please. How much is your annual income?
Customer: replied 1 year ago.
I have never lived in the property, it was bought as a buy to let. Annual income is £17800.00 Property income is £5200.00
ThanksLynn
Expert:  TonyTax replied 1 year ago.
Thanks.
Leave this with me while I do some calculations.
Expert:  TonyTax replied 1 year ago.
Hi again. If you sell the property in the current tax year, 2015/16, and make a gain of £55,000, the first £11,100 will be tax free leaving a net taxable gain of £43,900. This can be reduced further by deducting the purchase and sellig costs (legal fees, stamp duty, survey fees, selling agent fees etc). Based on your figures, you will pay CGT at 18% on £19,385 (£3,489.30) and at 28% on £24,515 (£6,864.20). The total CGT will be £10,353.50. It will be payable to HMRC on 31 January 2017. I hope this helps but let em know if you have any further questions.
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