# tax confusion!



## teignqueen (Nov 18, 2012)

Hi, just wondering if anyone out there can give me some info on how much uk tax we will be liable for when we sell our house over there? looking at making 
about 100,000 on the house. cheers


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## escapedtonz (Apr 6, 2012)

teignqueen said:


> Hi, just wondering if anyone out there can give me some info on how much uk tax we will be liable for when we sell our house over there? looking at making about 100,000 on the house. cheers


All depends if it is/was your main home ?

If it was then it's likely you'll not be liable to pay any as you'll get relief on any capital gain when you sell, pass on or dispose of.

Research the HMRC site as there's lots of info there.

We're also in the same position and looking to make a decent figure out of a sale.

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## teignqueen (Nov 18, 2012)

thanks. it was our home when we lived there, but we rented it out for a couple of years whilst we got settled over here. Would that change things?


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## escapedtonz (Apr 6, 2012)

teignqueen said:


> thanks. it was our home when we lived there, but we rented it out for a couple of years whilst we got settled over here. Would that change things?


Yes, it was our main home too.
Seems were very much in the same situation as we also rented ours for 18 months. It's been empty 8 months now.
It's possible that having rented it out, the tax relief won't be 100%, so there may be some of the capital gain that is taxed, although I couldn't give you a figure. You definitely wont be taxed on all the capital gain though.

Normally, say you bought a property in the UK as your main home for £150 000, then you spent £30 000 on an extension, your total outlay will have been £180 000.
Say you then sold it for £300 000, your capital gain will be £120 000.

If the price you sold it for isn't considered within the range of market value (maybe because you wanted to sell quickly) then I think HMRC can consider the average market value instead of the price you received at sale, meaning your capital gain could be more.

If it has only been your main home then you should receive full Residents Relief on the total capital gain meaning you will have zero tax to pay, BUT if you have previously rented all or part of the property out, or sold a part of the land etc etc there may be a percentage of the Residents Relief that is withdrawn meaning you could be liable for tax on that percentage remaining.

Remember though any percentage remaining that is liable for tax - the liability is shared between the owners of the property which is usually husband and wife, plus HMRC also takes into account your personal allowance of around £9000 each.

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## teignqueen (Nov 18, 2012)

cheers, that makes sense, thanks for taking the time to reply. I am off to the UK next month ( first time since relocating here) will get the chance to sort out any issues with the house sale. Good luck with your sale, hope it goes smoothly.


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