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Bought a house in 1992 for £ 70k remorgaged new kitchen

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Bought a house in 1992 for £ 70k remorgaged for work new kitchen windows the mortgage was £110 k I have spent some say 2k new boiler , toilet ect.Selling costs say £300 and storage cost at prescent £1k I moved out in 2005 and bought a house so I could be near my ill daughter. I have sold the original house for £260 k what would the gain be
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Before I can give you a full answer I need to know if you let the house after your 2005 vacation?
Customer: replied 1 year ago.
Yes but the payments keep me under the lower tax paying allowence
Customer: replied 1 year ago.
I with my drawdown and pension I get approx 14 k pa as from July this year
Expert:  bigduckontax replied 1 year ago.
You will be liable for Capital Gains Tax (CGT) on the sale of this property, but only for a proportion of the gain reflecting when it was let out. Your total ownership period was 276 months. Letting period was 102 months (for the last 18 months of ownership you are deemed to be in residence even if this is not the case). Thus say 36% of the gain is liable to CGT. The gain is 260K less 70K + 110K = 80K @ 36% = say 29K. This will be taxed at 18% or 28% or a combination of the two rates depending on your income including the gain in the tax year of sale. However, you do have 11.1K of Annual Exempt Amount (AEA) to offset this gain plus Lettings Relief (LR) up to 40K so these two will completely eliminate the gain so there will be no CGT to pay. I do hope that I have been able to set your mind at rest on this matter.
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Category: Tax
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Experience: FCCA FCMA CGMA ACIS
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

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