What is my capital gains tax liability if I pay off a mortgage and then sell?
If I pay off a mortgage on a buy-to-let property with my savings and I later sell the property, what is my capital gains tax liability? For example, purchase price £100,000, mortgage £50,000. I pay off the mortgage and later sell for £150,000. 

Arthur Weller replies:
The capital gain is the difference between the sale price (here £150,000) and the purchase price (here £100,000), i.e. £50,000. The mortgage is not relevant to a capital gains computation (unless the purchaser takes over responsibility for the mortgage; see www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg12706)).

This question was first printed in Property Tax Insider in December 2017.

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