Hello, I am Keith, one of the experts on Just Answer, and plesed to be able to help you with your question.
On the assumption that this was not your sole or main domestic residence you will be liable for Capital Gains Tax (CGT) on the gain made on disposal. The gain is the difference between the net selling pirce ie fater deducting selling costs including advertising and the acquisition price. The latter is the purchase price plus pirchase costs including Stamp Duty Land Tax plus any improvemnets eg installation of double glazing, central heating, extensions but not routine maintenance. This will be levied at 28% on the gain less your 11.1k non cumulative Annual Exempt Amount (AEA).
I do hope that you have found my reply of assistance.
The interest element would indeed be allowable against any rental income received, but as there was none there is no relief available.
Dependent relative occupation used to be allowable in the CGT computation, but is no longer, blame Gor***** *****:
'A Relief from capital gains tax on the sale of a house inhabited by a dependent relative only applies to a residence acquired before April 5 1988. That was one of the tax concessions phased out by Gor***** ***** as part of his drive to boost the coffers of the Inland Revenue.'
AEA, as I explained in my original answer is a non cumulative item. You get it ionly in the year you sell.
Mortgage interest does not come into the purchase costs, but the charges imposed to obtain the mortgage do.
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