I have rented out two rooms in my property for several years and the mortgage is paid offQ I’ve been renting out two rooms in my flat in Devon for several years but am now thinking of selling it. The rent has always been below the rent-a-room threshold of £7,500 a year, so I’ve not declared it or paid tax on it. I’m not self-employed, by the way, and never have been. The mortgage has been paid off.I have come across articles that suggest I may need to pay some capital gains tax on the flat when I sell it due to having had two lodgers at the same time – is that true? My income is about £27,000, the flat was bought for £100,000 in 2004 and is now worth in the region of £140,000 to £150,000. How much tax would I be looking at paying if I sold it please? It’s all really confusing and really frustrating as much of the rent I’ve earned has been used to meet the living and travel costs of working in London three days a week (the rest of the time living at the flat). Continue reading…
Source : theguardian.com
Read more…Do I have to pay capital gains tax when I sell my flat because I had two lodgers?
