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bigduckontax, Accountant
Category: Tax
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I have a property which I am selling ,I bought it for £30,000

Customer Question

I have a property which I am selling ,I bought it for £30,000 and spent £26,000 on it and am selling it for £83,000 I have had the property for 16 mths
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to assist you with your question. Assuming that the property was never your sole or main domestic residence then you will be liable to Capital Gains Tax (CGT) on the gain realised. From your data this would be: 83K - (30K + 26K) = 27K gain. You do have an Annual Exempt Amount of 11.1K to offset this which reduces your exposure to 15.9K. This will be taxed at 18% or 28% or a combination of the two rates depending on your income including the gain in the tax year of sale. Worst case scenario is a CGT bill of just under 4.5K. If you have let the property in the interim the whole ball game changes as there is the possibility of Lettings Relief (LR) and you will have to come back to me with more follow up information. I do hope that my reply has been of use to you.