tax on selling property????

[bubbles4920]

i am concerned that i will be taxed on the sale of my house. i have a joint mortgage with my partner on a different house and have my own mortgage on my own property from 1992. i have let it out and also gone back to live there or stay over some nights in the past. when the sale goes through next week i am hoping that i will get the full profit i am expecting. do i have to declare anything to anyone or do i get tax exemptions. im having sleepless nights about this. hope someone can sort me out. ps is it up to the solicitor to declare things for me at the point of exchanging contracts???

[jake-the-peg]

I think you may be disappointed.

I believe you're liable for tax unless it's your "principal residence" and I wouldn't think "staying some nights in the past" would qualify it as such.

[buildersmate]

The above is correct and you definitely can't have more than one main residence for tax purposes. The non-main residence will be assessed for capital gains tax in the tax year in which sell it, the difference between the purchase and sale price, offset by some taper relief, and of course capital gains tax starts after an annual threshold is exceeded.

It is not up to a solicitor to do anything. It is beyond the scope of this site to advise you and I would recommend you either read up on capital gains on property or invest some of your potential gains in a tax accountant to help you. It would be worthwhile because there are ways of minimising this thing. For example, you can elect which house is your main residence and it may be possible to switch between one house and the other, especially if you lived in the other one. Depending on when you bought each property it may best for you to declare the one you are now selling as your main residence and take the tax hit later on sale of the one you aren't selling.

Talk to an accountant rather than have sleepless nights. Count yourself lucky that you wisely invested in property at a time when prices shot up.

[bubbles4920]

thank you for your very good advice. i will get professional help asap.