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Renting out my old home

Im renting my old home out via an agent, how do i work out how much tax i have to pay? If I sell it will i be liable to capital gains tax if i dont move back in?

Asked on Nov 3 2015, General in Cambridgeshire | Report content

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  • The link below would be a good place to start. The simple, play-it-safe answer to working out the tax is to assume the taxman will want 20% of it if you are a basic rate taxpayer and set that aside; if you are a higher rate taxpayer make that 40% and see an accountant. As for CGT see The simple answer is that you probably won't pay tax provided you sell it within 18 months of moving out. But you need to check the rules carefully and get professional advice.

    Web reference:

    Answered on Nov 4 2015, Report content
  • The tax you pay will depend on which tax bracket you currently fall under, i.e. 20%, 40% or 45%. You will need to submit a yearly tax return and declare the income from the property. As for CGT, if the property is sold you may be liable. There is however some relief from this available but will be changing April 2016. I would suggest speaking with a local tax expert who can advise further on this.

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    Answered on Nov 4 2015, Report content

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