Tax on selling second home?

DO_YOU_KNOW_DAVE

I have a flat and house.
I live in my house and my flat is empty.
I want to sell my flat and rent out my house as I plan to move to another city where I will rent.
How much Tax would I have to pay in percentages if I sold my flat?

I could move back into my flat and live there for a period of time if this meant it would be my first home and would'nt be taxed as much if I then sold it.

I know I really need to seek professional advice but can anybody give me a rough idea?

Thanks in advance.

Cazza

Hi! Not 100% sure of the calculations, I'll have to check them, but you're going to need to show us some figures! How much did you buy the flat for and how much do you hope to sell it for? When did you buy it? Have you ever lived there, if so how long for?

Murdina

Just re the second point about moving into the flat, the test as to whether or not it is your home is one of quality, not quantity. If you live there for a couple of months when you've already for example taken a job in a city not perhaps within commuting distance then you are probably going to find it a tall order to argue it really became your home. Certainly you would have to make sure you jumped through all possible hoops eg council tax, insurance and other correspondence coming there and not putting it up for sale as soon as you move in. Even then on the facts as you give them I would not be confident you would win your argument.
If you exchange contracts on the flat after 5/4/08 then the answer is relatively easy - CGT will apparently be 18% of the difference between what it cost and what you paid for it (from what we understand of the proposed new rules). Less any improvements too. If you sell before, then as Cazza said, tell us the amounts and date you bought it.