Tax question

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M
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Hello.

Question 1:

If I were to buy a property for 100000 of which I put a deposit of 20000 down (80000 would be made up of a mortgage (BTL)) then: -

If in 10 years time the propery is worth 150000 and I decide to sell then am I right in saying that I will be subject to CGT on 150000 - 100000 = 50000?

So I would effectively get my 20000 deposit back for 'free'?

Also if not trading under a company and as a sole trader I would have to pay 40% of the profit minus my CGT allowence for that year (approx 10000)
So 40% of 40000 = 16000?

Why can't I roll on previous years CGT that I may not have used?

Question 2:

If I had the same property as described above but decided to move in for 6 months prior to selling it I'm aware I can clain PPR. Therefore getting tax relief;

Does this apply for all of the gains made on the property for the last 10 years?

Any replies appreciated.

10/02/2009 00:00

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