How much tax to pay on my flat? (2nd home)

[jasonrmudge@aol.com]

I have a flat that I purchased in March 1989.
Since 1992 it has been tenanted.
I live in another house with my 2nd wife which we brought together in 1998, before that I rented.
I am thinking of selling my flat. The purchase price was £52,000. It is currently valued at about £140,000. The outstanding mortgage is about £38,000.
I am a 40% tax payer.
Obviously I need proper advice, but could anyone tell me just roughly how much tax I would have to pay on the profit (I won't hold you to it!!)
I can understand about taper relief on CGT, it's the mysterious Indexation Allowance Applicable before 1998 that confuses me.
Any help appreciated. Like I say, I will definitely take proper advice, but I just want a ball-park figure... as the difference between (say) paying £20,000 and £40,000 to the government could decide whether I sell it or not. and buy a place abroad. or not!
Kind regards
Jason

[Ian McTernan CTA]

Ball park figure taking into account indexation and PPR relief is £14,000 at 40%. This could be further reduced by transferring the property into joint names before the property is put up for sale (leave a few months before then putting on market). This figure does not include the lettings exemption which could be applicable nor the last 36 months rule. Transferring to joint names would allow two annual exemptions instead of one.

Hope this helps!

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