Capital Gains Tax if I made money on property?

ironlady2022

Hi
If i sell my current house (only property I own) for £270k, and my next property will cost £240k, i understand the first £12300 is tax free from capital gains. Will i definitely have to pay capital gains tax on the remainder £17700? Are there any expenses i can deduct to reduce the 20% on the £17700? Or do i even pay any capital gains tax? 

masca

You don't normally pay capital gains tax when selling your primary residence, so there shouldn't be anything to pay.
https://www.gov.uk/tax-sell-home

dunstonh

Is this your primary residence?  If it is and always has been then there is no tax.   If its not your primary residence (or there was a period when it wasn't) then it's subject to capital gains tax calculations.

masonic

As above, capital gains tax is probably not applicable in this situation, but even if it were, the price of your next property is irrelevant. The capital gain would be the difference between the price you sold the house and the price you bought it.

soulsaver

Do you live in the house you own? Or is it let?

Freecall

As above but even if is it not your primary residence, what you then chose to spend your £270k cash on is irrelevant.

The clue is in the name, only the Gain matters.

macman

By your rather contorted logic, you've made a 'loss' of 30K, not a 'gain'.
And the rates are 18% and 28%, depending on your marginal tax rate.

ironlady2022

Thanks everyone, it is my primary residence. I can see there is no tax due, and yes you are right it's difference between the paid price and what I sell it for anyway - thank you.

Bagli

Hi as a single parent with a house I am constantly worrying if I die will my children have to sell the home to pay for capital gains tax. Are they protected as they are residence of the address if I have named them in my will as joint owners. I am paying an insurance that is in trust  but scared this may not cover the cost .  I was also thinking of selling the house and giving them the money to buy their own flats as first time buyers but will they fall into having to pay capital  gains tax if I die before 7 years .can anyone help me see the wood between the  trees in laymans terms. Your help is much appreciated 

Malthusian

Bagli said:

Hi as a single parent with a house I am constantly worrying if I die will my children have to sell the home to pay for capital gains tax.

Capital gains tax is extinguished on death. And if it's your primary residence (and always has been) there isn't any CGT to extinguish.

Are they protected as they are residence of the address if I have named them in my will as joint owners. I am paying an insurance that is in trust  but scared this may not cover the cost .

As above CGT isn't going to be an issue. Is your estate large enough to be subject to Inheritance Tax?

I was also thinking of selling the house and giving them the money to buy their own flats as first time buyers but will they fall into having to pay capital  gains tax if I die before 7 years .

You are muddling up taxes. The seven year rule is for Inheritance Tax, not CGT.

If you sell your house, then if it's your primary residence (and always has been), no CGT is payable. If it isn't covered by Primary Residence Relief then you will have to pay capital gains tax on the proceeds.

If you give them some of the money and don't survive seven years, the gifts (minus allowances) are added back to the estate for the Inheritance Tax calculation. Even if they were, is your estate large enough to be subject to Inheritance Tax?

If you sell the house where are you going to live?