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 taxadvisor.uk Your Own Question
taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5207
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

If I were to purchase two lock-up garages for a total of

This answer was rated:

If I were to purchase two lock-up garages for a total of £20000 and then were to sell them within a month for £40000, would this attract Capital Gains Tax, and if it did, how much would that tax cost?

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

Gain made from sale of lock-up garages would be chargeable to capital gains tax.

You would claim gains annual allowance of £11,300 against the gain of £20,000 less cost associated with buying and selling and the balance would be subject to CGT at 10% provided your total income including the gain after allowance remains within £33,500 threshold for basic rate of tax.

Say your other income after personal allowance £20,000

Gain after gains allowance is (20,000-11,300) £8,700

Total income (20,000+8,700) £28,700.

This is below £33,500. Therefore your capital gain would be taxed at 10%

(8,700x10%) £870.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 5 months ago.
Thank you. That information was most useful.

Thank you for your good words.

I hope this is helpful and answers your question.

If there are no more issues, I will appreciate if you would kindly rate my service/accept the service I have provided before you leave the site, to ensure I get credited for it by Just Answer.

taxadvisor.uk and other Tax Specialists are ready to help you