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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15940
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I sold a property in December 2016 and the total gain was £70,000

Customer Question

I sold a property in December 2016 and the total gain was £70,000 pounds. How much CGT would I pay? I am a basic rate tax payer.
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
Sorry Dec 2015
Expert:  TonyTax replied 1 year ago.

Hi.

Assuming you sold the property in December 2015, the first £11,100 of the gain will be tax free due to the annual CGT exemption. That leaves a net taxable gain of £58,900.

There are two rates of Capital Gains Tax, 18% and 28%. The rate or combination of rates that you will pay will be dependent on the level of your income in 2015/16. The most that can be taxed at 18% is £31,865. That will be reduced by £1 for every £1 of income you had in the 2015/16 tax year over £10,600. Therefore, your CGT liability will be somewhere between £13,305.50 (£31,865 @ 18% + £27,035 @ 28%) and £16,492.00 (28%).

I hope this helps but let me know if you have any further questions.

Expert:  TonyTax replied 1 year ago.

Hi.

I'm just following up to find out if my answer helped or if you have any further questions.