Selling houseto move into rented accomodation !

dibbs26

I now own my house which I paid £20k 12 years ago. Its now worth £120k and I am now thinking of getting out of the market to rent somewhere. Will I need to declare this money to the taxman or will it be automatically picked up once I pay the cheque into my account at my bank?

Holiday

dibbs26 wrote:

I now own my house which I paid £20k 12 years ago. Its now worth £120k and I am now thinking of getting out of the market to rent somewhere. Will I need to declare this money to the taxman or will it be automatically picked up once I pay the cheque into my account at my bank?

I don't believe there is any income tax or capital gains tax payable on the gain as long as the house was your primary residence. I think............

frugal_dougal_3

dibbs26 wrote:

I now own my house which I paid £20k 12 years ago. Its now worth £120k and I am now thinking of getting out of the market to rent somewhere.

Hi,

May we ask why ??

dibbs26

Of course................So I make sure that if any tax is due that I pay the correct amount and also within the correct time frame to avoid fines.

frugal_dougal_3

dibbs26 wrote:

I now own my house which I paid £20k 12 years ago. Its now worth £120k and I am now thinking of getting out of the market to rent somewhere.

dibbs26,

No I am even nosier than that.

I meant why selling ? Not why trying to avoid CGT (you won't have to pay that)

I will respect it if you say "mind your own business"

dougk_2

I'd be interested to know why too... if you don't mind

Mainly because I'm thinking that you would be spending your "gained" money on paying someonelse's mortgage... baiscally its like depreciation your property by £5 or 6k a year if you sell and rent. Renting for say 20 years and all your money would be gone (assuming rent increases etc)

frugal_dougal_3

You're reading my mind dougk.

I know people have done this but it seems such a retrograde step. Especially when the property has appreciated so much.

dougk_2

From our posts on these forums f_d I think we have plenty of similar views and thoughts!

Actually as a baby i was called dougal

dippy

Dibbs, that would be a great "textbook" case of buy low sell high, if you don't mind me saying.

dibbs26

In my opinion I think the market will slow considerably. When it does I may well jump back into it. The house I bought is only a terraced and it is only worth what somebody is willing to pay for it. I think £100k profit is tidy and that the house has now peeked in value.
After I sell have you guys any ideas where to put the money for half decent growth....(except property for the time).
Also what happens when I pay this money first of all into a bank account.....its a huge sum..........so will I need to fill paperwork out & provide solicitors letters etc.......

cheers

dibbs26

dippy wrote:

Dibbs, that would be a great "textbook" case of buy low sell high, if you don't mind me saying.

not at all !!