Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
The SDLT is based on the consideration paid in the transaction. I would be inclined to leave that in the hands of your solicitor.
Any Capital Gains Tax (CGT) liability on ultimate disposal will be calculated on any gain made. This is the difference between the acquisition and the disposal price. The acquisition price is the cost of the property plus purchase costs including SDLT plus any improvement eg installation of double glazing, central heating or extensions. The disposal price is net ie after deducting selling costs including advertising. The gain 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. You have a non cumulative Annual Exempt Amount (AEA), currently 11.1K to offset this gain and if you have occupied the premises and then let them out then Lettings Relief (LR) up to 40K may be available also [unlikely].
I do hope that you have found my reply of assistance.
I have opted out of this question.