CGT/TAx on sale of property investment

[Michael2374]

Hi,

I bought a property at auction 20th July 2016. Its a one bed L/H flat with 125 yrs left on lease. It was in a dilapidated stated when i bought it so i have completely gutted it remodelled and rebuilt it. I now wish to sell it and I'm wondering how much CGT and other costs I'll have to pay and also if any of the costs for renovation can be used in this years tax return that i still need to do.

My particulars are
Married Home Owner
F/T Job = £31k p.a
Rental income from other mortgage free property £14,400 p.a
Purchase of new flat (at auction) £109k including sol/auctioneer/SDLT fees (20th July 16 completion date)
Cost of refurb incl new kitchen, bathroom, flooring, heating system, plumbing, electrics etc £12,000
Proposed Sale price £175,000

Any advice/opinion would be greatly appreciated

Thanks

[Peter D]

I assume you did not live in the property. This would be an adventure in the nature of a trade and you should have registered as a property developer as Income Tax will apply not CGT. Regards Peter

[Michael2374]

Thanks Peter so any idea what level of income tax i will have to pay?

[Michael2374]

Thanks Peter so any idea what level of income tax i will have to pay?

and no i didnt live in it