Selling an investment property - capital gains tax advice needed

Becks045

We are selling a property which we purchased June 2005. We will make £14,000 profit.

Given that I've read that the capital gains tax allowance is £9,200 per year do I presume that we don't need to pay any tax on this sale?

I own the property with my partner (we aren't married) so in theory we get £9,200 each a year so that an allowance of £36,800 that we'd be allowed in the 2 years we've owned it.

Can anyone clarify please.

Thanks.

clutton_2

you only get the allowance once in the year that you sell it - so you can claim an allowance of £9200 x 2. o you should not have to pay tax. You can also offset buying costs (solicitors fees, lenders fees mortgage fees) plus any capital expenses you have incurred along the way. you can carry forward these losses to next year if you can offset them against rental income. Talk to your tax man they are very helpful.

boyse7en

You can't carry your unused allowance over into following years, so anything over £9,200 will be subject to CGT. As Clutton says, you won't be liable for any tax as individually your profit will only be £7,000.