Profits on Sale of Propery

[kevinantonyjohnson@h]

> I would like to sell my 2 bed First Floor flat.
> I am not looking to buy any other property.
> I know that i have to pay tax on the profit of my flat, the profit on the
> sale of my flat should be in the region of between 40K -60k
> Could you tell me if this Property Tax or Capitol Gains Tax, could you
> also tell me what percentage I'd have to pay on the profits.
> > My intention is to buy a house in 2 -3 years time with the money, I am
> gambling that house
> prices will go down in this period making it cheaper for me to buy.
> Will the tax that i have to pay be in one large sum or in instalments.
> My original intention was to open a bank account and keep the money there
> until i buy a new place,
> which as i mentioned earlier would be in 3 years. How much (percentage)
tax
> would i have to pay
> on my savings account and could you suggest any ways of reducing my tax
bill
>
> ie low risk. Many thanks
>
>
>
>
>

[demetris]

If this is your main residence i.e. you live in it, the capital gain on sale will be exempt from capital gains tax and you will have no tax to pay.

If it is an additional property, you will have to pay CGT on any capital gain. There are ways to reduce capital gains tax.

I hope this helps.

Demetris Savva BA FCCA
http://www.tax-accounting-london.info
constantinesavva@accamail.com