CGT payable if I sell my BTL after 20yrs?

[ollie12]

Hi everyone,

I am new to the forum and wanted to know do i have to pay CGT???

We brought a house approx 20 years ago for £11,000 and now its worth £170,000. We have rented the house from day one and never lived in it ourselves

Can somebody let me know how to work out the cgt.

Thanks

[Tax Accountant]

Hi everyone,

I am new to the forum and wanted to know do i have to pay CGT???

We brought a house approx 20 years ago for £11,000 and now its worth £170,000. We have rented the house from day one and never lived in it ourselves

Can somebody let me know how to work out the cgt.

Thanks

Your original cost of £11,000 is now increased to approximately £18,000 due to inflation.

Therefore your gross gain is £170,000 less £18,000 = £152,000.
Less Relief for using it as your home = £NIL
Less Taper Relief £152,000 gain x 35% = £ 53,000
Less Annual CGT Allowance = £ 8,800

Taxable gain = Approximately £90,000

CGT payable approximately £27,000 assuming half is taxed at lower rate of 20% and the other half is taxed at higher rate of 40%.

If you live in the house as your home before selling it, you could reduce your taxable gains by approximately £40,000. This will result in CGT payable to be reduced by approximately £16,000.

Ramnik