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Adam Hunt
Adam Hunt, Accountant
Category: Finance
Satisfied Customers: 398
Experience:  FCCA, FFA, FFTA
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We are based in Scotland. We bought a small family home in

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We are based in Scotland. We bought a small family home in 2012 during the recession at a good price, and few years ago, we remortgaged it and converted it into a buy-to-let, and then used some of equity along with savings to buy a bigger house in 2017 which we are now living in. What taxes will we be required to pay if we sell the small home when we reach retirement in 15 years?

Hi, you will pay tax on any gain that you have had so difference between purchase price and selling price. Higher rate is 28% after higher threshold and basia rate is 18%.

Customer: replied 6 months ago.
Hi, when we remortgaged to make it buy-to-let, the property value was higher, so would that be considered as purchase price considering that's when the home became a business rather than when we were living in it prior to it becoming buy-to-let? I am asking because the difference is quite considerable from when we bought it and when we converted it into BTL.

YOU will add capital expenditure (improvement costs) into the cost of the property.

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