How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ash Your Own Question
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
Type Your Law Question Here...
Ash is online now

I am selling six buy to let properties which I have been letting

This answer was rated:

I am selling six buy to let properties which I have been letting since I purchased them in 1999. The original cost of all six properties in 1999 was £343,450. The total expected sales receipts are likely to be in the region of £798,000. What % of the "profit" will I need to declare as CGT?
Hello my name is ***** ***** I will help you.
You should be declaring the annual income as taxable in any event. Therefore the profit element will be:
£798,000 less £343,450 = £454,550 will be profit.
You can deduct costs of buying, selling or improving your property which reduce your gain.
These include:estate agents’ and solicitors’ fees, costs of improvement works, eg for an extension (normal maintenance costs don’t count, eg for decorating).
Assuming for calculation there are no fees to deduct liability would be:
£454,550 profit less tax free allowance £11,100 which means you are taxed on £443,450.
If you are basic taxpayer you will then pay 18% up to £31,785 of income and 28% over this.
Can I clarify anything for you about this today please?
Ash and other Law Specialists are ready to help you

I am just following up to see if there is anything else I can help with?

If you have not done so already might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.

If you need more help please click reply.