CAPITAL GAINS TAX CONFUSION
Hi, can someone please shed some light on this issue of mine as I would be very grateful indeed..
I have a second house bought in 2001 for Â£60k. It was bought with a Â£45K buy-to-let mortgage. The value of the house is now at Â£120K and my mortgage is approx Â£40K.
My salary is Â£31,750 a year.
My Problem is this.. I want to SELL this house and take the equity & capital gain to buy another house.
I understand since I bought the house, it has increased by Â£60K. (minus my CGT allowance 9K = Â£51K)
So is my CGT based on Â£51K?
Do I have to pay 40% CGT on Â£51K? If not, what percentage will the CGT be?
If I remortgage the house so that I have a bigger loan, then sell the house will this be a way of significantly reducing the CGT to pay?
Could I live in this house for more than 6 months and claim "main residence"? what are my benefits this way? Wud I be able to get away with paying any CGT?
I heard that if I 'sell' this house to buy another Buy-To-Let property, then I will not have pay CGT, is this TRUE???
your help on this matter will be greatly appreciated...