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Peter
Peter, Chartered Tax Advisor
Category: Finance
Satisfied Customers: 151
Experience:  Director at PDS Tax Limited
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Assistant: How can I help? If I sell a second home that had

Customer Question

Hello,
Assistant: Hi. How can I help?
Customer: If I sell a second home that had 150000 equity release on it what proportion of the sale price would attract Capital Gains Tax?
Assistant: What are the assets or property for this capital gain?
Customer: It was bought for 275 would probably sell for 400 with 150 equity release?
Assistant: Anything else you want the Accountant to know before I connect you?
Customer: Don't think so
Submitted: 5 months ago.
Category: Finance
Expert:  Peter replied 5 months ago.

Hi, my name is ***** ***** I am a Chartered Tax Advisor.

Can you please confirm:

  • whether you have ever lived in the other property?
  • when was it purchased?
  • have you spent eny money developing the property (and if so how much?)
Customer: replied 5 months ago.
Only as a holiday home, we do not do holiday let's.
Feb 2009
New bathroom and ensuite Apx. 8000...
Expert:  Peter replied 5 months ago.

Hi. Please accept my apologies that it has taken a while for me to respond.

The amount of equity you have taken out against this property will not affect the amount of CGT payable on its sale, however you will need to factor in the amount you will need to repay to your lender when the property is sold. I attach a rough indicative calculation of the CGT and net proceeds (after repayment of the mortgage). I hope this is helpful.

Kind regards, Peter

Customer: replied 5 months ago.
I thought I had just paid for a phone call which you recommended I needed.I hope this is not one of those sharp practice sites???
Customer: replied 5 months ago.
Thank you Peter...
Expert:  Peter replied 5 months ago.

Hi. I hope I have answered your question sufficiently. Do you have any further questions on the subject? I am happy to help.

Kind regards, Peter