I have to pay any tax when I sell my home?
shall have no tax to pay on the sale of your home provided
it has been your main residence during the entire time you
have owned it.
about if I rent out a room in my home?
will not have to pay any tax if you let out a room in your
house provided the rent you receive is not more than £7,500
per year. Any rent received in excess of this will be taxable.
about tax on rent I receive on a property that I let out?
If you rent out a
property then you will need to prepare Rental Income Statements
each year and you will have to pay tax on any profits you
make. The profits will be the rents you receive less any allowable
- Repairs and Maintenance Costs
- Interest on any loan or Mortgage to buy the property
- Service Charges
- Agents fees
- Accountancy Fees
- Cost of furniture & fittings
about when I sell a property I have been letting out, will
I have any tax to pay?
When you sell a
property that you have been renting out, you will have to
pay tax on any profit you make on the sale. The profit will
be the sale proceeds less the original cost of the property,
including agents/legal fees etc, plus the cost of any property
enhancements you have made while you owned the property.
There are certain
other relief's allowed depending on the circumstances. Typically
if the property was your main residence at any time during
the period you have owned it then you will be able to claim
residence relief in addition to lettings relief. Each person
is also entitled to his or her annual capital gains tax exemption,
which is currently £11,300. The current rate at which
these profits would be taxed is 18% (18% up to the basic rate
band and 28% thereafter)