selling a flat in Ealing London?

shambolics

Hello, I am looking to sell my flat in Ealing, which I have been renting out for some 10 years. It is an ex local authority property ground floor of a two story property with front and back garden. I had been hanging on riding out the fall in the market but I am having so many problems with tenants and letting agents I feel I have had enough.
Is it a viable option selling a flat in west London at present? I would like to sell and get a place nearer where I live in North essex so I can keep an eye on things. Are places selling and also do I get hit for capital gains if I immediately invest in another property? This flat is my second property by the way the house I live in being my first.

Sir_Humphrey

It should still be worth more than you paid for it, so it is viable to sell. It just means you would not get the capital gains you might have gained in 2006, but that is water under the bridge surely?

carolt

Used to live there, and noticed recently that selling prices there were back down to similar levels to when I left 5 years ago.

But as Sir Humph says, that's still a good 300% on 10 years ago, so you shouldn't find it hard to sell at a profit - just not as much profit as a year ago.

silvercar

also do I get hit for capital gains if I immediately invest in another property? This flat is my second property by the way the house I live in being my first.

Did you ever live in it as your principal private residence (ie your main home)? If so there are a number of allowances availabl to you to reduce the tax burden.

Otherwise the property would be liable to CGT on sale. Calculate the selling price less the selling costs and buying costs and any improvements (but not maintenance). That is your gain, then subtract your CGT allowance, currently £9,600, if not used elsewhere. You will pay CGT on the remainder at the rate of 18%. You declare the gain on your tax return for 2009-2010 and pay the tax by 31 January 2011.

shambolics

silvercar wrote: »

Did you ever live in it as your principal private residence (ie your main home)? If so there are a number of allowances availabl to you to reduce the tax burden..

now that is a complicated one! I lived in it but The property is actually in trust to me as I handed it over to my mother 10 years ago because I am disabled and was unable to deal with it. I am guessing it would be my mother officially selling it which she is happy to do. I am more posting this on her behalf

silvercar

Beyond my knowledge, but I think (so check) a trust may be a separate body and allowed to have a PPR of its own. If that is true then there will be no CGT to pay. It could depend on what sort of trust it is. Jimmo may know, he posts mainly on the tax board and is an ex tax inspector specialising in CGT.

Here is your starting point:

http://www.hmrc.gov.uk/helpsheets/hs294.pdf

lincroft1710

Just been looking at an Ealing property paper, asking prices seem astronomic, 3 bed Victorian semi £525K, 3 bed flat roof Wates built 60s semi £450K, 1930s 4 bed semi £650K