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Do I pay tax when I sell my rental property

Started by gdm62, January 23, 2019, 06:19:20 PM

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gdm62

HI - I live with my partner and am not named on her mortgage. Im selling my rental - which I lived in myself for 18 years and then rented out for 10. will I need to pay any tax on the sale?  I don't own any other properties.thanks in advance for any help

Simon Pambin

Yes, you'll be liable to tax on about a third of the gain - you get principal residence relief for the time it was your principal residence, plus 18 months.

You can knock off selling costs, and then you have an annual allowance of about twelve grand.

You'll pay either 18% or 28% on what's left after that, depending on your marginal rate of tax.

I take it you're not married/in a civil partnership with your partner?

FORZA AZZURRI

I'm married but my rental is in my sole name so what would I need to do to get the benefit from her  allowance
bearing in mind it's up for sale now ?  Is it too late to put it into joint  names?

Simon Pambin

It shouldn't be a problem time-wise: all you've done so far is put the property up for sale, so it's not as if you're going to be exchanging contracts tomorrow.

Have a word with solicitor - you'll be needing one shortly for the conveyancing anyway - or an accountant. If it costs you a couple of hundred quid and saves you a few grand, it's got to be worth it.

gdm62

Hi no we aren't married or in a civil partnership. we both  have paid employment.  when I was living in the house I remortgaged it to pay off my ex wife - looks like it could be complicated.