Do we pay C.G.T?

[emily1901]

Hi,
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..
Help appreciated...

[TaxationPete]

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

CGT Bill 0

Regards Peter

[emily1901]

Thanx Peter.. Your A star>>>