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Quick advise please

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Comments

  • Redknapp
    Redknapp Posts: 174 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Sorry my mistake.
  • Mrs_pbradley936
    Mrs_pbradley936 Posts: 14,571 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Redknapp wrote:
    That's 40% is it not?

    Yes it is but if you do not own any other property and you live in it before you sell it you will not have to pay it. Anyway you have an allowance of £8800 (this years' allowance).
  • Redknapp
    Redknapp Posts: 174 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Was meaning do they take 40% of the profit you earn in rent.
  • Mrs_pbradley936
    Mrs_pbradley936 Posts: 14,571 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    No, what you earn in the year is subject to income tax not Capital Gains. Of course if you are paying higher rate tax anyway it will work out at that. If you clear £3000 per annum from the flat (500 x 12) that is added to your income from other sources and taxed accordingly. The Capital Gain applies if you sell something other than your main residence and make a gain. Everyone is allowed a main residence but if you are married you are not allowed one each.
  • Redknapp
    Redknapp Posts: 174 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Thanks for that.
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