Selling a second property

[football]

I moved from my previous residence (which I had lived in for 16 yrs)2 years ago.I currently rent out the property.The mortgage has been paid on the property.I got married 4 months ago.If I sell the property what are the tax implications?Myself and my wife are in addition considering purchasing an additional property as an investment.Our joint salary is £65,000.Our current joint mortgage is £150,000.What are the tax implications for this ?
THank you

Chris Shaughnessy

[Ian McTernan CTA]

If you sell the property within 36 months of moving out then it is deemed PPR and no CGT to pay. After this period of time CGT will be applicable on a time- apportionment basis and the lettings exemption would also apply.

The additional property will be taxable when you sell to CGT.

Rental income should be declared on your property in your return, on the new property if purchased in joint names then on both your Returns. If there is one of you that is in the lower rate bracket for income tax then it may be worthwhile buying in their name only, and you may wish to consider transferring your sole property in to joint names.

Ian McTernan CTA
McTernan Associates Ltd
Chartered Tax Advisers
ian@imcternan.com