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Selling property

Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
in Home, Law & Money
I know not many people here have experience with selling property .. but I have a question.

If you bought a property for £200,000
then you sell it for £275,000

Do you get to keep the £75,000, or is there tax to be paid on it?

Supposing it is not being used to finance another property purchase.

:chin:

Thanks.

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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    If it's your house, nope. If it's a business sale then u pay capital gains on it.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    depends whether you have a mortgage or other debts to pay off. usually selling a property involves lots of solicitors fees etc. the probability is you won't get to keep all of it although you would most likely make a neat profit on it.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    For tax puposes: If its classed as your principle priviate residense (where you live), then you dont have to pay tax. If its a second home/buy to let you will have to pay capital gains on the profit but there are allowances available. The profit you can keep, after paying all the sale fees (broker, estate agents etc)
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Ah thanks.

    I already have money to pay solicitors/agency fees - but I was wondering if I would be taxed on the 75k - because it's an amount you are receiving in one lump sum.

    Ta again :)
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Woah, good on you, that sure is a tidy little sum!
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    BritJames wrote: »
    Ah thanks.

    I already have money to pay solicitors/agency fees - but I was wondering if I would be taxed on the 75k - because it's an amount you are receiving in one lump sum.

    Ta again :)


    is it your domestic property or an investment property ?
    If its your domestic property there isn't any Capital Gains, if its not then you will be liable for capital gains.

    See http://www.hmrc.gov.uk/cgt/index.htm FMI
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