Additional taxes on second properties / holiday Lets

Grumpy_chap

eskbanker said:

RogerPensionGuy said:

Quick sale price is 600K and due 2nd property SDLT is 35.5K and lets guess my buying and selling fees now/3 or 5 years is 10K, so the costs are say 645.5 in total.

My question at long last, if I sell flat for say 700K in 5 years, is my CGT 54.5K and I will pay the current CGT rate at that time, I think its 24% of 54.5K.

Or is the above wrong?

Your chargeable gain would be £54.5K less costs associated with the sale, and your actual CGT liability would be determined according to your income tax band at the time (so some or all could be at the lower 18% rate) and also your annual allowance, currently £3K (from 2024/25).

I read the query from RPG that costs associated with the sale were already considered before calculating the £54.5k:

• Price £600k
• SDLT £35.5k
• Buying & Selling Fees £10k
• TOTAL COST (including disposal charges) £645.5k
• Sell £700k
• Gain £700k - £645.5k = £54.5k

Obviously, the actual disposal charges won't be known until whenever the disposal occurs.