Shropshire-Guy

Any u Bods on here tell me please at what stage or amount would u pay tax on a property u where selling for say £250,000. ie Capital Gains Tax i think its called

Or i may be wrong

darlodge

Capital Gains Tax is only (currently) applicable if you are selling a second home . CGT is 40%


Darren

dtriggs

You wont pay tax if it is your main residence but you are liable if it is a 2nd home.

pslewis

Or, correct me if I'm wrong, a property that is not the main residence?

Pete

David Lock

Just to clarify if the property is liable for CGT it is not 40% of the full value but 40% of the gain/profit since purchase/acquisition. I can't remember if account is taken of general house prices rises though? Someone will know though......

pslewis

There is 'Taper Relief' .... but NOT based on house prices!!

Pete

Kieran_Burns

iTrader: (1)

I think you mean the Stamp duty you pay:

Stamp Duty
Exempt for properties under £120,000
1% for properties over £120,000
3% for properties over £250,000
4% for properties over £500,000

So if your house is worth £250K sell it for £249,999

David Lock

Which the BUYER pays. But, of course, the property is financially more attractive (£7,500 cheaper overall) if priced at £249.999 rather than £250,000

Freak

then sell fixtures and fitting on top of that (which dont have to count towards the 250k stamp duty threshold )

TheBigMan!!

Only £5000 cheaper overall at £249999, not £7500.

Anyway, stamp duty doesn't come into this. It's CGT the original poster is concerned with IF it is not his primary residence.

David Lock

Yep sorry - 3% less 1% which I forgot about - so net 2%. Doh. But, as you say, SD is not relevant to the poster.

richardg

the 3% is payable on the whole amount, rather than the difference between £120,000 and £250,000