Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Remember Benjamin Franklin once quipped that in life there were but two certainties, death and taxes, and he was right!
This is a capital item and any gain made on the sale will be liable to Capital Gains Tax (CGT). The gain is calculated from the difference between the acquisition and the disposal prices. The former is the purchase price, plus purchase costs including Stamp Duty (if any, unlikely) plus improvements, but not routine repairs. The latter is the net sum received on sale ie after selling costs including advertising. From this figure you can deduct your non cumulative Annual Exempt Amount (AEA) of 11.1K and the remaining figure is taxed at 10% or 20% or a combination of the two rates depending on your income including the gain in the tax year of sale. Watch out here as residential property is taxed at 18% and 28% and HMRC may try to swing that one on you. As most local authority by-laws preclude residence in beach huts you should be able to knock that try on out quite easily.
I do hope that you have found my reply of assistance.