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Perfect, thank you.
Another question - not sure if my payment has covered it but here goes.
I own a buy-to-let.
Current value - £230k
Original purchase price - £89.5k
Mortgage remaining - £150k
What would be the profit on the property after I have sold and what is my Capital Gains liability on that profit?
Hi again.If you sell your buy to let for £230,000 having paid £89,500 for it, you will make a gain of £140,500. You can also deduct the costs of buying and selling the property (stamp duty, legal fees, survey fees, selling agent fees etc).There are two rates of CGT, 18% and 28%. The rate or combination of rates that you will pay will be dependent on the sum of your income and the net taxable gain in the tax year you sell the property. The first £11,100 of gains made in the 2015/16 tax year will be tax free. Assuming you sell the property in the 2015/16 tax year, one of the following scenarios will apply:1 If the sum of your income and the net taxable gain in 2015/16 is £42,385 or less, you will pay CGT at 18% on the net taxable gain.2 If your income alone in 2015/16 is £42,385 or more, you will pay CGT at 28% on the net taxable gain.3 If your income alone in 2015/16 is less than £42,385 and the addition of the net taxable gain takes it over £42,385, then you will pay CGT at 18% on some of the gain and at 28% on the balance.I hope this helps but let me know if you have any further questions.