How much Capital Gains Tax to pay on selling second home?

Lyttonpippa

My husband and I bought a second home in 1999 for £89,000. We let it for two years but since then have spent weekends and holidays there. We plan to sell it next Spring and have had it valued at £485,000. There is no mortgage on the property. We are both basic rate taxpayers. Any idea what the capital gains tax would be please?

xylophone

https://www.tax.service.gov.uk/calculate-your-capital-gains/resident/properties/disposal-date

may help.

00ec25

the fact you let it is irrelevant since it has never been your main home, only your holiday/second home

you do not say if owned in unequal shares, but I'll assume 50/50
you also do not mention any buying costs such as legal fees, SDLT (unlikely on 89k) and selling fees such as EA fees, legal fees etc . Those are all costs which can be deducted

gross gain 485-89 (- any fees & costs) = 396k, so 198,000 each
you each then do your own calculation based on you each starting with a 198 gain
from that you can deduct your personal CGT allowance 11,700 so leaving a taxable gain of 186,300

basic rate taxpayer is no help, you pay 18% CGT on the amount of your share of the gain falling between your individual income subject to income tax and £43,500.
So unless you both have identical incomes, one of you will pay a bit more CGT than the other.
You pay CGT at 28% on everything between 43,500 and 186,300.

the worst possible case, based on the above would be all at 28% so 52,164 each tax payable

now go off, get your costs and income figures together, and do the real sums

Lyttonpippa

Thank you both very much for your responses. Sorry if I gave information which is irrelevant. Just didn't know how these things are calculated, so gave all the details that I have but you have given me information that I do need to enable me to make the calculation.

SmashedAvacado

if you have spent any money on improvements - rather than maintenance, this can also be set off against profit.