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 bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 6954
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I am considering selling two properties in the financial

This answer was rated:

I am considering selling two properties in the financial year 2019 -20. One is not expecting to make any capital gains but will the proceeds fo that property be counted as income and therefore affect the rate of CGT that I will have to pay? I'm on a pension and therefore receive well under the higher tax bracket level.
Assistant: What are the assets or property for this capital gain?
Customer: One is a residential house and the other is a student unit (worth only 30-35K. The house will probably sell for 175K
Assistant: Anything else you want the Accountant to know before I connect you?
Customer: No

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

No, they will not, they will be gains, if any, under the Capital Gains tax (CGT) regime and not subject to the Income Tax (IT).

Customer: replied 6 months ago.
I expect an income of 18K in the tax year and 55K capital gains from the main property so if I also sell the 30k property at the price I bought it for will that not make any difference to the capital gains tax I will have to pay?

Not a jot, but if you made a capital loss that could be set against any gains elsewhere.

bigduckontax and other Tax Specialists are ready to help you
Customer: replied 6 months ago.
Thank you

Delighted to have been of assistance.

Thank you for your support.