Tax on Selling a House

[pinkjudy45]

We rent out a house, if we sold it how much tax would we have to pay, also if I left this house to family when I die would they have to pay tax on it if so could someone give me some idea where I could find out this information.

[bednobs]

your property would be liable for capital gains tax (if it has made a capital gain)
when you die, your estate would have to pay inheritance tax (if over certain amount) They wouldn't have to pay it, the estate does

[ummmm]

I don't think you pay tax when you sell a house. You pay tax (stamp duty) when you buy one.

[bednobs]

if it's not your main home you do

[Old_Geezer]

You may be liable for capital gains any time you make a capital gain.
I was wondering if you lived in it and made it your main residence, whether it would make any difference.
Or what if you gave it to your grandkids years before you die ?

[Ric.ror]

I thnk you have to pay capital gains tax if it is not your main residence - others will have far more knowledge than me

[ummmm]

Oh yeah....bednobs is right....sorry.

[LoftyLottie]

As Helen says. The current rate of CGT is 18% for standard tax payers, but there is an initial allowance of £10,000 and you can also take off any expenses in preparing the house for market and selling it.

ie. If you sell a house for £150,000 that cost you £100,000 and it cost you £5000.00 in expenses to sell, then you would pay 18% of £35,000 = £6,300.

[LoftyLottie]

If you live in the house and make it your main residence then capital gains tax wouldn't apply. However if you still are left with another property you would pay capital gains tax when you came to sell that.

[LoftyLottie]

Old geezer, there are problems with gifting if you are getting old. If you die within 7 years of gifting then the recipients will be subject to tax. Best to speak to a financial adviser about trust funds etc.

The state will get your money whichever way it can!!

[pinkjudy45]

Thankyou all for the information, also thanks 'LoftyLottie' for so much info, it has been very helpful, Thanks again.

[LoftyLottie]

You are welcome

This is a useful calculator

http://www.which.co.u...gains-tax-calculator/

And if you do sell, don't forget to keep every single invoice for anything you pay out!!

[Old_Geezer]

Maybe the secret is to sell it off a bit at a time so you keep under the annual limit ;-)