if i live in a property that was once buy to let, will i pay cgt when i sell?

JennyP

booksurr wrote: »

if all of the gain is payable at 28%, the worst possible outcome would be 37,600 maximum payable

Am I missing something? I don't understand how the maximum is 37600?
Surely the maximum is between 18% and 28% of the gain?

Your_Hero

JennyP wrote: »

Am I missing something? I don't understand how the maximum is 37600?
Surely the maximum is between 18% and 28% of the gain?

It would depend on what your other taxable income is for the year. Since you haven't told us (being "unemployed" doesn't mean you have not had any other income) booksurr is just stating the worst case scenario if the whole gain is to be taxed at 28%.

But I'd imagine it's most likely between 18-28% as you say.

booksurr

JennyP wrote: »

Am I missing something? I don't understand how the maximum is 37600?
Surely the maximum is between 18% and 28% of the gain?

this is very simple maths

based on the hypothetical figures you gave the net taxable gain is 134k

the most CGT you could possibly have to pay is 134k x 28% = approx 37,600.
we are simply illustrating the worst possible case which would occur if you were already a high rate income tax payer and therefore all of the gain is at 28% and none is at 18%. However in your case at least some will be 18% as it would appear you are not a high rate tax payer so yes what you will pay will be some at 18% and some at 28%

purdyoaten

JennyP wrote: »

Am I missing something? I don't understand how the maximum is 37600?
Surely the maximum is between 18% and 28% of the gain?

By way of an example - if your income is less than £10000 in this tax year, any chargeable gain will be charged - 31865 at 18%, the remainder at 28%.

kidmugsy

It's possible to use rather specialist investments, such as EISs, to defer CGT. It seems unlikely they'll suit you if you want money to buy another house. Also they are high risk investments. So it looks as if, short of dying, cheating, or changing your mind, you are indeed going to have to pay CGT.

patanne

Don't forget to continue filing SA until HMRC agree that you can stop - they aren't waiving fines now even if no tax is due.