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bigduckontax, Accountant
Category: Tax
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My wife and I jointly own a property which has been let out

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My wife and I jointly own a property which has been let out over the last 20 years. It is currently being sold at £119,000. Sale costs will be 2,350. Improvement costs were 2,000. purchase & costs were 46,400. My wife's total income for this year 15/16 will be 16,300 my total income will be 12,000.
What is the total tax we can each expect pay for the 2015/16 tax year.
Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
Did you ever live in this property?
Once I have a reply I can assist you.
Customer: replied 2 years ago.

No. Only let it out

That is a disappointment as you will not be entitled to Lettings Allowance which could have given you some 40K of relief.
You are liable for Capital Gains Tax (CGT) as follows:
119K - 2.35K - 2K - 46.4K = 66.25K at half each = 33.125K - 11.1K [Annual Exempt Amount] = 22.025 liable to CGT.
CGT is levied at 18% or 28% or a combination of the two rates depending on the individuals' income including the gain in the year of sale.
Your wife's will all be in the 18% bracket so her CGT liability will be a tad under 4K as indeed yours will be also. Simple, as the Meerkat in the TV advert would say, total bill for the pair of you just under 8K.
I do hope that I have been of assistance to you in my answer which assumes that you are both resident in the UK
bigduckontax and other Tax Specialists are ready to help you
Thank you for your support.
This gain is declared on your 15/16 self assessment tax return and will not be payable until 31 January 2017.
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