Sell BTL and home

chris316

Hi, I am considering moving to be closer to family, the house I'm interested in is only attainable if I sell my BTL property and the house I live in, what taxes will I have to pay for selling these?

Rough estimate

BTL Value 100k-70k equity
Residential value 85k -40k equity

New property value 250k, would still need at least 100k mortgage.

Thanks

AdrianC

You may be liable for CGT on the rental, but the amount would depend on how long you've owned it and how much the value's increased during that time - as well as any other investments you may have.

booksurr

if you have occupied your house as your main home the whole time you have owned it there is no tax top pay when you sell

as for the BTL, how can you not know you are liable for Capital Gains Tax? The clue is the word gain, that means neither "value" nor equity

I assume you have been declaring your rental profit for income tax purposes so HMRC already know you exist so when you sell they will know ...

chris316

As you can tell I have no idea what I'm doing here,I'm not in it as a business, the BTL had been my home since I bought it apart from the last 2 years, circumstances changed and it made sense to rent it out and buy another.
Trying to work out what CGT will be, it's asking how much has been spent on the property- am I meant to give evidence of 15 years improvements? Rental relief? Gonna have to go and see a professional methinks

AdrianC

chris316 wrote: »

I'm not in it as a business,

Yes, you are. Whether you realise it or not.

chris316

Could you elaborate on that please mate?

marliepanda

What he means is being a landlord, letting out your house in return for money, is a business.

Its a business whether its one man letting out his old house because he didn't want to sell it/couldnt sell it, or a company with 1000 properties.

Its still a business with business responsibilities, such as paying tax on the income, performing certain safety checks, complying with certain laws.

chris316

Yeah in the 2 years it's been rented out everything has been done right- income declared, all relevant certificate's obtained and updated etc. I just have no idea what tax gets paid if I sell both houses to buy a single residence. Just came on hoping to be pointed in the right direction till I can see someone in the week.

xylophone

https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief

may help.