Capital gain tax on selling buy to let property
Discussion
I've currently got an accountant but they don't advise on property so asking here before to get an idea if it's worth selling.
I currently own 1 property (no other homes owned) that is rented and i am looking to sell. I've had it 3 years and never lived in it.
As i understand, Basic-rate taxpayers pay 18% and higher rate pay 28%, i currently fall into the latter.
So if i was a higher rate tax payer, i would pay 28% on disposal? I'm trying to do man math and i worked out if i sold the house for 30k more than what i paid for it, paid 5k estate agent and fees to end mortgage and spent 1300 on it when buying in fees i would only pay 3k? is that correct?
I'm resident in Scotland if it makes any difference.
Help appreciated
I currently own 1 property (no other homes owned) that is rented and i am looking to sell. I've had it 3 years and never lived in it.
As i understand, Basic-rate taxpayers pay 18% and higher rate pay 28%, i currently fall into the latter.
So if i was a higher rate tax payer, i would pay 28% on disposal? I'm trying to do man math and i worked out if i sold the house for 30k more than what i paid for it, paid 5k estate agent and fees to end mortgage and spent 1300 on it when buying in fees i would only pay 3k? is that correct?
I'm resident in Scotland if it makes any difference.
Help appreciated
I recently sold a house that I had never lived in. Bought 2007 sold 2019. I used a tax consultant in Glasgow (although the house was in England). The difference in price was +£50K, and I paid around £250 CGT. He said there were several options how to calculate the tax, I let him do it all, including submitting the CGT return. It was well worth his fee.
Yeah 28% is a real kick in the balls.
I’m pretty sure fees are covered on sale.
Not sure on purchase fees.
Not sure on mortgage termination fees.
Pretty sure mortgage interest was stopped.
So £30,000 - £5,000 = £25,000 capital gain
£25,000 - £12,300 CGT allowance (if unused) = £12,700 taxable gain
£12,700 x 28% = £3,556
Definitely take advice on what you can/can’t claim.
I’m pretty sure fees are covered on sale.
Not sure on purchase fees.
Not sure on mortgage termination fees.
Pretty sure mortgage interest was stopped.
So £30,000 - £5,000 = £25,000 capital gain
£25,000 - £12,300 CGT allowance (if unused) = £12,700 taxable gain
£12,700 x 28% = £3,556
Definitely take advice on what you can/can’t claim.
hutchst said:
I recently sold a house that I had never lived in. Bought 2007 sold 2019. I used a tax consultant in Glasgow (although the house was in England). The difference in price was +£50K, and I paid around £250 CGT. He said there were several options how to calculate the tax, I let him do it all, including submitting the CGT return. It was well worth his fee.
Sent you a pm!rockin said:
There are some strange numbers in this thread, and an accountant who doesn't do property CGT sounds as useful as a dentist who doesn't do teeth.
Yeah mines won't advise as their specific to a sector and won't advise on property which i'm ok with.Eric Mc said:
Make sure you are aware of the 30 day file and pay requirements which came into effect on 6 April.
Thanks for the heads up!Mr Whippy said:
Yeah 28% is a real kick in the balls.
I’m pretty sure fees are covered on sale.
Not sure on purchase fees.
Not sure on mortgage termination fees.
Pretty sure mortgage interest was stopped.
So £30,000 - £5,000 = £25,000 capital gain
£25,000 - £12,300 CGT allowance (if unused) = £12,700 taxable gain
£12,700 x 28% = £3,556
Definitely take advice on what you can/can’t claim.
Yeah that's what i got through the HMRC calculator.I’m pretty sure fees are covered on sale.
Not sure on purchase fees.
Not sure on mortgage termination fees.
Pretty sure mortgage interest was stopped.
So £30,000 - £5,000 = £25,000 capital gain
£25,000 - £12,300 CGT allowance (if unused) = £12,700 taxable gain
£12,700 x 28% = £3,556
Definitely take advice on what you can/can’t claim.
Just to add: I'm hoping to selling this house prior to purchasing a new one which should save me on the additional stamp i'll need to pay on that.
hutchst said:
I recently sold a house that I had never lived in. Bought 2007 sold 2019. I used a tax consultant in Glasgow (although the house was in England). The difference in price was +£50K, and I paid around £250 CGT. He said there were several options how to calculate the tax, I let him do it all, including submitting the CGT return. It was well worth his fee.
Can you private mail me, your profile doesn't permit messages, thanks Rameez-Q said:
Can you private mail me, your profile doesn't permit messages, thanks
No, I tried but can't mail you. But we could play a little game. I once heard about a code that used the second letter in each word of a nonsense sentence. Somethimg like...Stinky rum prevents scaley banks engine.
that might (or might not) represent the name of a firm with offices on St. Vincent's Street. They also have an office in Edinburgh.
hutchst said:
No, I tried but can't mail you. But we could play a little game. I once heard about a code that used the second letter in each word of a nonsense sentence. Somethimg like...
Stinky rum prevents scaley banks engine.
that might (or might not) represent the name of a firm with offices on St. Vincent's Street. They also have an office in Edinburgh.
Got it thanks! Fixed the messages things but will give them a call tomorrow.Stinky rum prevents scaley banks engine.
that might (or might not) represent the name of a firm with offices on St. Vincent's Street. They also have an office in Edinburgh.
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