Tax on a house

[katekoala]

Hi
my husband and I have our own home, and bought a 2nd last year which we are renting out. We are looking to sell when the market picks up - and am aware I will have to pay tax on any profit that we make on the house.

I am not at all trying to get out of paying tax, all that bothers me, is we spent a great deal on the house to renovate (it was a total tip!) probably in the region of £20-£30k, and we wont actually make any profit, just get our money back (if that!) would I still be liable for tax?

I can list what jobs have been done, and am sure I can even get photo evidence of before/after.

thanks

[buildersmate]

You are liable for capital gains tax on any profit you make between what you bought it for and what you eventually sell it for, at the time when you eventually sell it. However you can offset any gain against all the expenditure you have made on improving it (items that have been incorporated into the fabric of the structure).
So you should keep each and every one of these receipts.
You should also, of course, be declaring the income from letting as income on your annual tax return form.