This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Marketing

A bit of data which remembers the affiliate who forwarded a user to our site and recognises orders from those who become customers through that affiliate.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Which amount do we pay tax on?
If we sell our second property that we rent out, do we pay tax on the complete sale price or the differential of what we paid and the sale price? 
 
Arthur Weller replies:  
You pay capital gains tax on the differential of what you paid and the sale price. See HMRC’s Capital Gains manual at www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg14200. You can also deduct from the gain any enhancement expenditure (i.e. money spent on improving the property) and incidental costs of purchase and sale (see www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg15250).  

This question was first printed in Tax Insider in May 2019.

Tax Insider Lite

FREE tax strategies delivered to your inbox every month.

  • By clicking on the button below you agree to the terms & conditions and the privacy notice of the website.
  • Subscribe for FREE