After paying capital gains tax on house sale, do you also pay income tax on remaining profit?

MoneyMon555

Pretty much as the title days really , but here are a few more details...

Sold a buy to let in 2023/24 tax year, Capital Gains tax already paid on profit of that sale - a very small amount of earning from income for that year (below personal tax allowance) - do I also have to pay income tax on the remaining profit of the house sale?

Thanks in advance 

propertyrental

You pay income tax on the rental income.

You pay either CGT or income tax on the profit from the property - income tax if you have bought developed and sold the property as part of a business (ie the sale was income generated by your development business) but more normally for a BTL you'd pay CGT on the capital growth.

tacpot12

No, the CGT on the sale of the property is all the tax due on the sale. If you have been completing Self Assessment Tax returns, you will need to report the sale on your SA for the 2023/24 tax year, but this won't create any extra tax liability. 

If your earnings from the rental are less than your personal allowance, and you had no other taxable, income, there will be no income tax to pay. 

MoneyMon555

Hi both - yes , paid income tax on the rental for those years of ownership.

 CGT is paid, and just accounting for the end of year and wondered about it. 

 you very much @tacpot12 @propertyrental , I appreciate that clarity

theartfullodger

There are more than 10 taxes a landlord may have to pay...