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Where Taxpayers and Advisers Meet

selling second home

zdsdead
Posts: 4
Joined: Tue Apr 03, 2018 1:20 pm

selling second home

Postby zdsdead » Tue Apr 03, 2018 1:26 pm

Hi

I'm a complete newbie when it comes to all this sort of thing, so would love some advice on what to do from now on in with my second home sale.

The house was rented, but I'm wanting to sell now i originally bought the house for 27500 in the early 2000s

The house has an offer of 58000 now, how much tax do i have to pay roughly? both myself and my wife are basic tax payers earning just over 20k each

Any help will be much appreciated.

Peter D
Posts: 10668
Joined: Wed Aug 06, 2008 3:37 pm

Re: selling second home

Postby Peter D » Tue Apr 03, 2018 4:19 pm

About £711 each. You need to supply exact takes and costs of purchase and sale as these are deductible from your gain. I assume you are joint Owners. Regards Peter

zdsdead
Posts: 4
Joined: Tue Apr 03, 2018 1:20 pm

Re: selling second home

Postby zdsdead » Tue Apr 03, 2018 5:35 pm

thanks Peter, i thought it was going to cost a lot more than that, thought I would be roughly paying 18% on the profit of 30500 - estate agent solicitors, fees etc so even if I take 3.5k off its still 18 % of 27000 so 4860

i have heard i can claim some sort of rent allowance, and deduct a certain percentage for the time that we actually lived there in the past, Is this true?

bd6759
Posts: 3109
Joined: Sat Feb 01, 2014 3:26 pm

Re: selling second home

Postby bd6759 » Tue Apr 03, 2018 7:28 pm

You each have an annual exempt amount of £11700 to deduct from the gain.

You never mentioned living in it.

zdsdead
Posts: 4
Joined: Tue Apr 03, 2018 1:20 pm

Re: selling second home

Postby zdsdead » Tue Apr 03, 2018 9:09 pm

thanks bd

Sorry if I'm misunderstanding you but the 11700 is that separate from the 11850 we get allowed in our normal wage packets each year? is this in addition, a special case for selling a second home?

bd6759
Posts: 3109
Joined: Sat Feb 01, 2014 3:26 pm

Re: selling second home

Postby bd6759 » Tue Apr 03, 2018 10:49 pm

Yes. Everybody gets an annual exemption allowance for capital gains. It is £11700 in 2018-19.

Peter D
Posts: 10668
Joined: Wed Aug 06, 2008 3:37 pm

Re: selling second home

Postby Peter D » Wed Apr 04, 2018 12:24 pm

"and deduct a certain percentage for the time that we actually lived there in the past" That's new. You had better tell us the whole story with dates. Regards Peter

wamstax
Posts: 1869
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: selling second home

Postby wamstax » Wed Apr 04, 2018 12:46 pm

;) also confirm that you declared any rental profits made over the years to HMRC
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

zdsdead
Posts: 4
Joined: Tue Apr 03, 2018 1:20 pm

Re: selling second home

Postby zdsdead » Wed Apr 04, 2018 2:29 pm

Hi,

Sorry dates are as follows we lived there from Nov 2001 - July 2011

yes paid tax on all my rent collected

Peter D
Posts: 10668
Joined: Wed Aug 06, 2008 3:37 pm

Re: selling second home

Postby Peter D » Wed Apr 04, 2018 2:50 pm

There would be no CGT to pay. You need to supply, dates as dd/mm/year for all changes and the costs of purchase and sale to ensure we give you the correct figures. Regards Peter


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