Will I pay Capitall Gains Tax

00ec25

phoenix2010 wrote: »

Thanks , I have researched a little but needed clarification on the wording

If I sell it for the same price I bought it , then I dont pay any capital gains tax , is that correct ?

Thankyou

everyone is entitled to a personal allowance against CGT , for 12/13 that is £10,900

when you are selling your ex home, which has also at some stage been let out, you are also entitled to claim letting relief worth up to £40,000

potentially you could sell it for £50,900 more than you paid for it and would be liable for CGT but pay NOTHING it all depends on your figures and occupation period. If you want an actual answer, supply some numbers

Riggster

Capital Gains Tax is applicable to any increase in value, but this is proportionate to the time you didn't live in it. If you've owned it for 10 years but only lived in it for 3 then CGT is applicable on 7/10 of the increase in value. But you only pay CGT on any increase in value above the personal allowance (as other said above).

If your tenants can't raise the deposit, sell it to someone else!