Selling house... what to expect to pay back.
Discussion
I am planning putting my rental house up for sale soon and wondered what payments etc I am going to be hit with as I am a wee bit clueless.
House going on market at £170
Mortgage on house £74k. I also have another mortgage and was planning using the profit to pay off the house I now live in.
What should I expect to get hit with? Is it tax gains?.. yes I really am blonde when it comes to all this.
Cheers
Ave
House going on market at £170
Mortgage on house £74k. I also have another mortgage and was planning using the profit to pay off the house I now live in.
What should I expect to get hit with? Is it tax gains?.. yes I really am blonde when it comes to all this.
Cheers
Ave
birdcage said:
You will get tax relief if you ever lived there, plus capital gainsd relief of 10k? if you haven't used that elsewhere?
Have you ever remortgaged the property? if you have then tax will be paid selling price less first mortgage.
Yes I lived there first from 2000 till 2006 then rented it out full time. I did also remortgage it in 2009 to do a loft conversion on my other house (the one I now live in).Have you ever remortgaged the property? if you have then tax will be paid selling price less first mortgage.
k! Actually my reply was a bit misleading.
Tax payable on sale price less original price paid I think.
You are talking about a pretty low tax bill to be honest but I am not an expert, if you sold at asking price and hadn't used capital gains plus relief less than 10k but again I am no expert!
Tax payable on sale price less original price paid I think.
You are talking about a pretty low tax bill to be honest but I am not an expert, if you sold at asking price and hadn't used capital gains plus relief less than 10k but again I am no expert!
birdcage said:
Actually my reply was a bit misleading.
Tax payable on sale price less original price paid I think.
You are talking about a pretty low tax bill to be honest but I am not an expert, if you sold at asking price and hadn't used capital gains plus relief less than 10k but again I am no expert!
You cannot say what the tax bill is without knowing the original purchase cost, length of ownership and if he has lived in it himself. Tax payable on sale price less original price paid I think.
You are talking about a pretty low tax bill to be honest but I am not an expert, if you sold at asking price and hadn't used capital gains plus relief less than 10k but again I am no expert!
wattsm666 said:
birdcage said:
Actually my reply was a bit misleading.
Tax payable on sale price less original price paid I think.
You are talking about a pretty low tax bill to be honest but I am not an expert, if you sold at asking price and hadn't used capital gains plus relief less than 10k but again I am no expert!
You cannot say what the tax bill is without knowing the original purchase cost, length of ownership and if he has lived in it himself. Tax payable on sale price less original price paid I think.
You are talking about a pretty low tax bill to be honest but I am not an expert, if you sold at asking price and hadn't used capital gains plus relief less than 10k but again I am no expert!
House cost me £30k to build but I never paid for the land it is on (parents own it and was to be paid for later in life) I then as above remortgaged twice taking the final mortgage to £74k. House is worth about £170. Once sold I have to pay parents for the land, house has been built since 2000 and I lived in it from 2000 till 2006.
How much do you have to pay for the land? The gain will be £170k, less build cost £30k less cost of land.
The land disposal by your parent to you has tax consequences as well, especially if not at market value. You need to seek proper advice from an accountant, you will not get the right answer on a forum, it is too complex for that.
The land disposal by your parent to you has tax consequences as well, especially if not at market value. You need to seek proper advice from an accountant, you will not get the right answer on a forum, it is too complex for that.
wattsm666 said:
How much do you have to pay for the land? The gain will be £170k, less build cost £30k less cost of land.
The land disposal by your parent to you has tax consequences as well, especially if not at market value. You need to seek proper advice from an accountant, you will not get the right answer on a forum, it is too complex for that.
The plan was to split the profit 50/50. I am arranging to see my solicitor soon to get the ball rolling. If the land was to be sold at today's prices (without house) it would be about £90k+ to buy, back in 2000 I am clueless to its value but perhaps about £50ish?The land disposal by your parent to you has tax consequences as well, especially if not at market value. You need to seek proper advice from an accountant, you will not get the right answer on a forum, it is too complex for that.
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