CGT Question - Please Help!

bluelee75

I hoe someone can help with this. I own a property in Scotland which I have rented out for the last 7 years. I bought it in 1998 for £32k and lived in it for a year, and I have remortgaged twice to release equity - current mortgage is £68k approx. I am now thinking of selling this property and using the profit to buy a bigger home for me and my husband but am not sure about how much CGT I would be liable to pay, and if there is any way I can avoid paying too much tax. The property is now worth about £110k so I'd be making a profit of around £40k. I've searched for info on CGT but get confused about tax allowances, taper relief, disposal of assets and all of that stuff! Any advice would be gratefully received!

hopon

You need the actual dates of purchase etc & details of any purchase/sales costs + details of capital expenditure on the property to calculate accurately but there shouldn't be any tax to pay:

You have made a gain of £78000 - the remortgages don't affect it.
You get Private Residence Relief of 4/9ths of £78000 - £34000
You get Private Letting Relief of £34000
You get Taper Relief of £3000
Leaves a gain of £7000 which is below the annual allowance