We bought our 1st and only property 10/1996 for £35,000 and lived in it for 9years and 4months.
In 02/2006 we let it out and bought another property for us to live in.
We now would like to sell our rental property that has been rented out for 7 years.
The estimated value is £135,000 to £140,000.
The current mortgage outstanding is £83,000. Profit due roughly £42,000 to £47,000 total.
Our wages are roughly gross £27,000 and £28,000
Can we avoid tax or if not roughly how much..
Read HS283 on the HMRC web site. At present based of your figures PP and Letting Releif will wipe out any CGT liability. The numbers look like this :
Purchase 35,000 01/10/1996
Disposal 140,000 14/05/2013
Total Gain 105,000
PRR 78,090 148 199
Capital Gain 26,910
Lett Relief 26,821 Qual Days 1550
Net Gain 89
CG Allow 21,200