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monti
Apprentice
Joined: 24 Sep 2006
Posts: 11
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 Posted: 12/30/07 - 08:23 Post subject: |
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| Hi there! My family owns a house in a small village on the southern coast. That place now is becoming one of the hot spots for summer vacations and real estates prices are jumping almost every day. Having that in mind, and the fact that our kids are going to school soon, we have decided to sell the beach house. I remember reading something about Capital Gain Tax and now I’m curious whether we are eligible for it. In the end, we are going to make a significant profit. I also need info on CGT rates, so I was wondering if some of you could give me some assistance. |
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brok
Apprentice
Joined: 05 Mar 2004
Posts: 5
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| Posted: 01/28/08 - 23:02 Post subject: |
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| Hello! CGT is a tax on a property that has increased in value. In this case, your property does have its value significantly increased. It is also not your main home so, based on what you’ve written, I would say that you are eligible for paying the CGT. How will you pay it? Well, you will do that for each tax year and for all your taxable gains. So, if you sell your house now you will pay your CGT after the tax year ends, which means in April. Of course, there can be some deductions but it depends on many conditions so I won’t bother you with that now. Now, I’ll give you some info on CGT rates. There are three options. CGT rate can be 10 per cent if you gains are under the starting limit for income tax. If they are in between starting and basic limits of income tax, rate will be 20%. However, if gains are above the mentioned limit, CGT rate is 40%. Now there are some annual exemptions, and retirement relief if you’re over 50 or with ill health. That would be all about CGT rates. Take care! |
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