Have Tax Questions? Ask a Tax Expert for Answers ASAP
hello , I paid 112 ,000 pounds , thanks
Hi again.If you sell the property for £170,000 having paid £112,000 for it, you will make a gain of £58,000. The first £11,100 of the gain will be exempt from CGT which leaves a net taxable gain of £46,900. You can also deduct the costs of purchase and sale (legal fees, survey fees, stamp duty, selling agent fees, disbursements, VAT) from the disposal proceeds.There are two rates of CGT, 18% and 28%. The rate or combination of rates that you will pay will be dependent on the level of your income in the tax year of disposal of the flat. Assuming you sell the flat in the 2015/16 tax year, one of the following scenarios will apply:1 If your income in 2015/16 including the net taxable gain is £42,385 or less, then all the net taxable gain will be taxed at 18%.2 If your income in 2015/16 excluding the net taxable gain is £42,385 or more, then all the net taxable gain will be taxed at 28%.3 If your income in 2015/16 excluding the net taxable gain is less than £42,385 but more than £42,385 when you include the net taxable gain then part of it will be taxed at 18% and part at 28%.I hope this helps but let me know if you have any further questions.