Capital Gains

hoctorbedford

how do you calculate Capital Gains tax when you sell a property you have rented out for the last 12 years.

clutton_2

your annual capital gains allowance is £10k - so unless you have made a capital gain of more than £10k you wont have to pay any

scarletjim

clutton wrote: »

...so unless you have made a capital gain of more than £10k you wont have to pay any

That should read £120k then surely (£10k annual)?

00ec25

have people forgotten how to use google?

http://www.hmrc.gov.uk/rates/cgt.htm

guide to tax on property

OP
you need to answer a key question to get this right - have you ever lived there as your main residence before you let it out?

scarletjim
the "annual" allowance is a one off each year, you use it or lose it in that year, it is not cumulative

clutton_2

""That should read £120k then surely " - no it should read £10,100 for this tax year. Any capital gain made (after other allowances are taken into account) OVER £10,100 is taxable.

scarletjim

clutton wrote: »

""That should read £120k then surely " - no it should read £10,100 for this tax year. Any capital gain made (after other allowances are taken into account) OVER £10,100 is taxable.

(My bold and italics above btw):
Aha, so there is another way to effectively set off the effects of inflation. Think I understand lol.

clutton_2

you need to read up on the HMRC tax website or get an accountant or go to a specialist tax forum

Johnhowell

Why not post full details of dates, costs and expenses in our very own MSE "Cutting Tax" forum.

John