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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13975
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I would like to know how much tax I will have to pay upon

Customer Question

I would like to know how much tax I will have to pay upon sale of an investment property.
Submitted: 1 month ago.
Category: Tax
Customer: replied 1 month ago.
I purchased the property in 2001 for £131,000. I am looking to sell the property for around £375,000. I lived in the property for the first 3 years of ownership and have rented the property out permanently since. I would like to apply the annual £11K tax relief of both mine and my wifes.
Expert:  Sam replied 1 month ago.

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Expert:  Sam replied 1 month ago.

Hi

Thanks for your patience

Please advise

Is the property in joint names with your wife

What costs you incurred to buy such as legal fees

What costs you will incur to sell such as legal and estate agent fees

Did you declare all rental income to HMRC

Did you carry out any capital improvements such as new kitchen or bathroom etc ? If so what did you do and how much did you spend

And please advsie both you and your wifes' annual income

I can then provide the capital gains for each of you

Thanks

Sam

Sam and other Tax Specialists are ready to help you
Customer: replied 1 month ago.
Hi Sam,Costs to buy were approx £3000. The costs to sell will be approx £7500.The property is in my name only although we have been living together since 2004 and married in 2010.I have always declared all of the rental income to HMRC on my annual tax return.I installed a new kitchen and bathroom and new windows when I purchased the property. Total costs were around £10000-Windows 5k
Kitchen 3k
Bathroom 2kI'm not sure if central heating is included in this? I've spent around £4000 on a new central heating system in 2002 also.I have been unemployed for the past 3 years but earn £6000 a year through rental income. My wife earns £40,000 a year.ThanksLiam
Customer: replied 1 month ago.
Excellent advice. Thank you :)
Expert:  Sam replied 1 month ago.

YOU are very welcome

Thanks

Sam