New Posts For Thread: Tax question please.https://community.betfair.com/tradefair__financials/go/thread/view/94198/23726218/tax-question-pleaseI bought a property and sold it the same year for a 12K profit.How much tax can I expect to pay on it when I include it within my self assessment?Thanks in advance.If you buy and sell too many properties you dont live in then the HMRC will take the view that it is in the nature of a trade and you will be liable to income tax rather than CGT on the gains. There is no hard and fast rule as to how many but I wouldhttps://community.betfair.com/tradefair__financials/go/thread/view/94198/23726218/tax-question-please?post_id=425966738#425966738If you buy and sell too many properties you dont live in then the HMRC will take the view that it is in the nature of a trade and you will be liable to income tax rather than CGT on the gains. There is no hard and fast rule as to how many but I wouldSun, 28 Feb 2010 15:03:48 -0600OK that's put my mind at rest a bit. Thanks very much for your time and advice B-)https://community.betfair.com/tradefair__financials/go/thread/view/94198/23726218/tax-question-please?post_id=425966730#425966730OK that's put my mind at rest a bit. Thanks very much for your time and advice B-)Sun, 28 Feb 2010 10:40:08 -0600Separatelyhttps://community.betfair.com/tradefair__financials/go/thread/view/94198/23726218/tax-question-please?post_id=425966726#425966726SeparatelySun, 28 Feb 2010 10:38:53 -0600Would any rental income made on the property be added to the 12K or is that dealt with seperately?https://community.betfair.com/tradefair__financials/go/thread/view/94198/23726218/tax-question-please?post_id=425966722#425966722Would any rental income made on the property be added to the 12K or is that dealt with seperately?Sun, 28 Feb 2010 10:37:37 -0600The 'correct' way to calculate your liability.Bought for 100,000Sold for 112,000Profit 12,000LessLegal fees 1,500Stamp duty nilEstate agents fees 2,500Maintainance 200Insurance 200Weekly travelling expenses to property to comply with insurance condithttps://community.betfair.com/tradefair__financials/go/thread/view/94198/23726218/tax-question-please?post_id=425966718#425966718The 'correct' way to calculate your liability.Bought for 100,000Sold for 112,000Profit 12,000LessLegal fees 1,500Stamp duty nilEstate agents fees 2,500Maintainance 200Insurance 200Weekly travelling expenses to property to comply with insurance conditSun, 28 Feb 2010 10:29:01 -0600I bought it myself. Wish I'd put her name on it too in hindsight :(https://community.betfair.com/tradefair__financials/go/thread/view/94198/23726218/tax-question-please?post_id=425966714#425966714I bought it myself. Wish I'd put her name on it too in hindsight :(Sun, 28 Feb 2010 10:23:50 -0600Costs come off the £3,200, then the tax is 40% of what is left.You did buy it in your own name, or with your wife? If you bought it together, then you can split the CGT, so you would have no tax to pay.https://community.betfair.com/tradefair__financials/go/thread/view/94198/23726218/tax-question-please?post_id=425966710#425966710Costs come off the £3,200, then the tax is 40% of what is left.You did buy it in your own name, or with your wife? If you bought it together, then you can split the CGT, so you would have no tax to pay.Sun, 28 Feb 2010 10:20:12 -0600OK. The cost of buying and selling the place along with maintenance should more or less wipe out the £1280 shouldnt it?https://community.betfair.com/tradefair__financials/go/thread/view/94198/23726218/tax-question-please?post_id=425966706#425966706OK. The cost of buying and selling the place along with maintenance should more or less wipe out the £1280 shouldnt it?Sun, 28 Feb 2010 10:16:04 -0600Unfortunately not £3,200 at 40% so £1,280 to pay. The 18p rate does not apply for the relevent tax year.https://community.betfair.com/tradefair__financials/go/thread/view/94198/23726218/tax-question-please?post_id=425966702#425966702Unfortunately not £3,200 at 40% so £1,280 to pay. The 18p rate does not apply for the relevent tax year.Sun, 28 Feb 2010 10:14:35 -0600I do fall into the 40% tax bracket and it wasnt my primary place of residence. It was purely investment.So does that mean I will have to pay 18% of the £3200 after costs?https://community.betfair.com/tradefair__financials/go/thread/view/94198/23726218/tax-question-please?post_id=425966698#425966698I do fall into the 40% tax bracket and it wasnt my primary place of residence. It was purely investment.So does that mean I will have to pay 18% of the £3200 after costs?Sun, 28 Feb 2010 10:04:49 -0600