Selling a property; unsure of deductions 😔

big_gus · 2025-10-05T18:04:33+00:00

Due to a family issue I have to sell my house (currently being rented out) and as a newbie to this I was hoping the more experienced of you could advise as to my position/my expectations re sales.

Facts: bought in 2004 and lived in til 2008. Moved out in 2008 to current property and rented the initial property. Mortgage outstanding circa 150k. Expected sale price 500-550k.

The only thing I know for certain is that I’ll pay the going rate/percentage to whichever Estate Agent is instructed. After that, I am unsure of remaining costs involved (second property tax? Any extra fees for selling over 500k?).

Apologies if these are silly questions. I haven’t sold a house since 2003 when rules weren’t quite as tricky.

Thanks for any help and, of course, if more info is required then please ask.

poseidon1 · 2025-10-05T18:29:21+00:00

You will undoubtedly have a Capital gains tax (CGT) liabilty based on your proceeds of sale ( less selling related fees) less original purchase price. You will also have an allowance for the period you occupied the residence as your home. Your mortgage is irrelevant here ( not an allowable deduction).

CGT is payable within 60 days of the completed sale ( an online process), and also reportable on a self assessment tax return. Given this, you will likely benefit from the services of a professional tax accountant to calculate the gain and perhaps submit the online return on your behalf. The cost of such services are also a tax deduction from the property gain.

big_gus · 2025-10-05T18:38:36+00:00

Thank you, Poseidon. So would you be able to calculate what you think the final figures would be, or would you need more info from me? I need to share with family what the likely proceeds would be, and then work out a split 😕

poseidon1 · 2025-10-05T18:43:54+00:00

big_gus said:

Thank you, Poseidon. So would you be able to calculate what you think the final figures would be, or would you need more info from me? I need to share with family what the likely proceeds would be, and then work out a split 😕

Others on this forum maybe inclined to try, but professional tax accountants do this as their
day job, so my advice remains to seek professional ( insured) advice to be confident of the correct outcome.

big_gus · 2025-10-05T19:43:12+00:00

Of course, I have an accountant who completes my tax return. However, he also charges me just to ring/email him so I was just looking for a rough guess. If anyone else on the forum has any idea, please let me know.

Otherwise, thanks for your help, Poseidon. Much appreciated.