Do we pay C.G.T?

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  • Do we pay C.G.T?

    Hi,
    We bought our 1st and only property 10/1996 for £35,000 and lived in it for 9years and 4months.
    In 02/2006 we let it out and bought another property for us to live in.
    We now would like to sell our rental property that has been rented out for 7 years.
    The estimated value is £135,000 to £140,000.
    The current mortgage outstanding is £83,000. Profit due roughly £42,000 to £47,000 total.
    Our wages are roughly gross £27,000 and £28,000
    Can we avoid tax or if not roughly how much..
    Help appreciated...

  • #2
    Read HS283 on the HMRC web site. At present based of your figures PP and Letting Releif will wipe out any CGT liability. The numbers look like this :
    Purchase 35,000 01/10/1996
    Disposal 140,000 14/05/2013
    Total Gain 105,000
    PRR 78,090 148 199
    Capital Gain 26,910
    Lett Relief 26,821 Qual Days 1550
    Net Gain 89
    CG Allow 21,200

    CGT Bill 0

    Regards Peter

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    • #3
      Thanx Peter.. Your A star>>>

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