How much CGT to pay pls?

[Ellie10]

Hi, I can't work this out using online calculators as it seems far too complicated for my pea sized brain.

Bought 2 houses together from same company in 1995. Lived in one since (mortgage) and rented the other since (paid cash).
Now selling my house (offer accepted) and thinking of next move.
Trying to decide whether I move into the rental myself or sell it and buy elsewhere in the area. I'm ok with either option tbh but the amount of CGT I have to pay will have a huge impact on my decision.
Rental house cost £40k in 1995. I believe I can claim certain capital maintenance costs so let's assume that amounts to £25k over the years. If I sell @ £250k now could someone give me a ballpark figure for CGT estimate. I am under retirement age but have actually been retired since 2003 and am single status in case that makes any difference to anything.

Thanks for any help.

[Ellie10]

Sorry, also meant to ask if there are any rules about how long I would have to live in it as my main residence before CGT didn't become an issue? tnx again.

[bd6759]

CGT is selling price less costs. Allowable costs are purchase costs, enhancement expenditure, and incidental costs of sale. The rate of tax is currently split between 2 rates 18% and 28%, based on the income tax bands.

Any gain attributable to the period in which you lived in it as a residence, is exempt. If you lived in it for the next 25 years, half the gain would be exempt.

[Ellie10]

CGT is selling price less costs. Allowable costs are purchase costs, enhancement expenditure, and incidental costs of sale. The rate of tax is currently split between 2 rates 18% and 28%, based on the income tax bands.

Any gain attributable to the period in which you lived in it as a residence, is exempt. If you lived in it for the next 25 years, half the gain would be exempt.

Thank you very much for your reply. Could you give me a rough idea of how much I would have to pay?

Assuming all of the costs you mention total £70k and that I am a basic rate tax payer, what would my bill be pls if I sold it now?

What would my bill be pls if I sold it in 3 years time having lived in for for those 3 years?

I have nothing else that would attract CGT so would have full allowance.

Thank you.

[bd6759]

The gain is £180k. SAY £12,300 annual exemption. Taxable is £167,700

I do not know how much income you have, so I can’t say how much if that gain will be taxed at 18%. So I’ll guess 10.000.

£10,000 at 18% = £1,800
£157,700 at 28% = £44,156
Total tax £45,956.

If you live in it for 3 years, and that period counts as a it being your residence, the gain will reduce by £19,285 (without accounting for any increase in selling price). That would reduce the tax by about £5400. Assuming the rules are the same.

[Ellie10]

The gain is £180k. SAY £12,300 annual exemption. Taxable is £167,700

I do not know how much income you have, so I can’t say how much if that gain will be taxed at 18%. So I’ll guess 10.000.

£10,000 at 18% = £1,800
£157,700 at 28% = £44,156
Total tax £45,956.

If you live in it for 3 years, and that period counts as a it being your residence, the gain will reduce by £19,285 (without accounting for any increase in selling price). That would reduce the tax by about £5400. Assuming the rules are the same.

Once again, thank you so much bd6759! That's exactly the kind of ballpark estimate I was looking for. Much appreciated!