I've been told that if I hold the money made from a property sale in an account with the intent on useing it to buy a property in the future that I'll be liable for an added tax of some description when I withdraw it to use as a deposite. Is this true? Does anybody know the truth about the tax laws concerning profit made from a house sale?
2007-01-29 21:58:43 · 2 answers · asked by Robbie B 3 in Business & Finance ➔ Taxes ➔ United Kingdom
It depends whether the property is your main residence. There is no tax payable if it is. However, if it is not your main residence, the profit you have made between buying and selling will be subject to Capital Gains Tax. This is declared on your self assessment form.
Also, whilst the money is in a savings account, the interest you earn will be subject to income tax.
There is no tax related to withdrawing the money.
2007-01-29 22:59:30 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Rather than asking a bunch of random individuals this question you might do better to contact the tax office, or check their website. In my experience they are very helpful.
2007-01-29 22:26:08 · answer #2 · answered by gerrifriend 6 · 0⤊ 0⤋