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I purchased a flat in June 2005 for £105,000. I lived there

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Hi, I purchased a flat in June 2005 for £105,000. I lived there for a couple of years before I got married & then rented it out. I`m going to sell the flat now & I should get about £100,000 for it & I want to purchase another property to rent out. The mortgage was only for half the purchase price & I should get about £55,000 cash from the sale. Do I have to pay any tax on this or can I reinvest it all in another property?
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.
HI Thanks for your question, I am Sam and I am one of the UK tax experts here on Just Answer. Can I ask why the value has decreased ? I would expect this to show some profit as you had owned the property for 11 years? Thanks Sam
Customer: replied 1 year ago.
Property in the area just hasn`t gone up in value. The most I can expect would be possible £105k, the same as purchase price.
Expert:  Sam replied 1 year ago.
Hi Thanks for your response As long as you get a full valuation as evidence of this sale value - then you will in fact have a loss - and not a gain (as the capital gain is the sale price less the purchase price and has nothing to do with mortgages outstanding) And as you can also take into account the costs to buy and sell (such as legal fees and estate agent charges) then this loss, will be held for future use by HMRC if you make any gains let me know if I can assist further, but in the meantime it would be appreciated if you would rate me for the level of service I have provided (or click accept) Thanks Sam :)
Sam, Accountant
Category: Tax
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Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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