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Capital gains tax on flat i used to live in. help please!
sparkinmad
Posts: 2 Newbie
Hi all, I'm new to this so here goes..
I have a maisonette I'm selling. it is rented out and has been since 2009 on a residential mortgage with permission to let.
I used to live in the flat between 2007 and 2009 (2 years)
The flat is above another one as the property was purchased by two of us for 120k and split into flats and we had one each. these were then valued at 130k which we both got separate mortgages on etc.
so if I sell for lets say 120k as a realistic price, then how much CGT tax do I need to pay. My paye income is only 16k
Thanks for any help from anyone as I'm worried about selling!
I have a maisonette I'm selling. it is rented out and has been since 2009 on a residential mortgage with permission to let.
I used to live in the flat between 2007 and 2009 (2 years)
The flat is above another one as the property was purchased by two of us for 120k and split into flats and we had one each. these were then valued at 130k which we both got separate mortgages on etc.
so if I sell for lets say 120k as a realistic price, then how much CGT tax do I need to pay. My paye income is only 16k
Thanks for any help from anyone as I'm worried about selling!
0
Comments
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Profit is selling price less purchase price. You can also allow for your costs in converting it.
Roughly speaking your profit is 120-60(your share of 120) less say 5 for converting it. Gives you a profit of 55.
You lived in it for 2 of the 9 years of ownership and your allowed the last 18 months. So 55 x 3.5/9 can be taken off =21.4
Then you get letting relief (google it), that will be a further 21.4.
55-21.4-21.4=12.8
CGT allowance is 11.1k, so 12.8-11.1= 1.7k
1.7K taxed at 18%=£306.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
That's a great help thanks!
I'm guessing I would need receipts for all the work we did when converting from the house to flats... that might be a problem as I did it over two years and don't have things like that anymore...
But your help has been much appreciated, thanks again0
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