CGT question on selling both residential and BTL

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    CGT question on selling both residential and BTL

    Hi there,

    I would like to ask how much I have to pay for CGT if I sell in the financial year 2016-2017 both my residential home AND my 1 BTL property.

    As I am always lived in my residential flat, I guess I do not have to pay anything on disposal of it.
    The BTL flat was bought for £195k and it will be sold for £270k.
    My personal income for the financial year 2016/2017 will approximately be £25k.

    According with the calculations I did, I shouldn't pay any CGT on the sale of my residential flat and around £17500 CGT on the sale of my BTL.

    Is anyone able to confirm that my calculation is correct and that the total of CGT is around the figure of £17500?


    Thanks for the advice!

    #2
    Sounds about right.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      Actually £16,154. However you have not accounted for any acquisition costs or SDLT or sales and legal fees. Does the £25K include your rental profit. Regards Peter

      Comment


        #4
        Thanks Peter, I think I could deduct the stamp duty amount I spent when I bought the BTL and also my solicitor fee perhaps?...... yes £25K does include my rental profit for next year...

        Comment

        Latest Activity

        Collapse

        • inherited house - best to sell or rent
          by Wobble1
          Hi all,

          My father sadly passed away in February, I already owned half of his house as tenants in common via my mothers will (passed several years before), although I didn't live there with him. Have my own house nearby. I am sole beneficiary of his will, and as well as everything else,...
          17-06-2021, 20:32 PM
        • Need CGT help or do i ned an accountant
          by Sara2
          Mother died in 2007 left house to me and my 2 sibs it was family home and i lived in it until 1985 when i had my own house. My brother also lived in house at point mum died and he remained there until 2010 when not being able to sell the property i purchased whole of property by buying brother and...
          13-06-2021, 11:53 AM
        • Reply to Need CGT help or do i ned an accountant
          by Sara2
          I fail to see how i can notify hmrc that rental was terminated in 2019 whilt non paying tenant remained in the property until May 21
          17-06-2021, 19:29 PM
        • Reply to Need CGT help or do i ned an accountant
          by Gordon999
          If you do not inform the Tax Office and just move back to live in the BTL property, the "rental business with tax losses" , can remain in existence for three years.

          https://www.property-tax-portal.co.u...business.shtml

          But the property owner can notify the Tax Office...
          17-06-2021, 12:28 PM
        • Reply to IHT, CGT and Income tax avoidance
          by jpkeates
          But there's £750,000 mortgage lending to pay off when you die, so the "giving away" is more like a loan.

          I'm not expecting anyone to pay 1p more tax than they should, but I find it's sometimes interesting to replace "the taxman" and "HMRC" with "we/us"...
          17-06-2021, 09:38 AM
        • IHT, CGT and Income tax avoidance
          by clairol
          So I’ve been listening to some property investment seminars where the suggestion is to buy ‘good’ properties, regularly put the rent up and never sell them.
          The advice is to keep them forever so you do not pay CGT; re-finance regularly and either enjoy the money or re-invest it; pay minimal...
          16-06-2021, 16:40 PM
        • Reply to IHT, CGT and Income tax avoidance
          by Section20z
          Yes but people who do maths in your example could give the £750,000 away before death so beneficiaries get £400,000 extra and tax man loses ....
          17-06-2021, 09:01 AM
        • Reply to IHT, CGT and Income tax avoidance
          by jpkeates
          It might be popular, but only to people who can't do maths.

          It's only a tax effective policy in the same way that having no money when you die means you don't pay that much inheritance tax.

          Ignoring the reliefs and personal thresholds for simplicity, if you die with a portfolio...
          17-06-2021, 08:10 AM
        • Reply to Need CGT help or do i ned an accountant
          by jpkeates
          Surely the business continued (the rent was still owed, even if not paid) and the business continued until the disposal of the property (assuming it was the only property in the business).

          Your interpretation is more appealing if it can be justified....
          17-06-2021, 07:54 AM
        • Reply to Need CGT help or do i ned an accountant
          by jpkeates
          Whoever gave you that advice doesn't understand how CGT works.
          You straight line the increase between purchase and disposal and you can deduct any time the property was your main residence (plus some additional months) as that period's gain is tax free.

          Any valuation when you start...
          17-06-2021, 07:52 AM
        Working...
        X