Hi.I'm afraid that you cannot use your personal allowance against your capital gain. If you owned the property for five complete years before selling it, the taper relief will be £11,735 (15%) reducing the gain of £78,235 to £66,500. The effective rate of CGT of 10% applied to gains on the disposal of business assets, not buy to let property I'm afraid. Information on taper relief can be found here.Your taxable gain will be £57,300 (£66,500 - £9,200). The first £2,230 will be taxed at 10% (£223), the next £32,370 will be taxed at 20% (£6,474) and the balance of £22,700 will be taxed at 40% (£9,080). That gives you a total liability of £15,777. See here for how the 20% tax band is used.I hope this helps but let me know if you have any further questions.
Ok, thank you. I have informed HMRC that I need to make a disclosure (yesterday). Am I right in thinking I now have until 6th September to make that disclosure?
How should I play 'The Letter of Offer' on the disclosure form? I do not have the funds right now to pay off the £15,777 so would like to come to an arrangement with HMRC to pay monthly. Any suggestions please??
Presumably it is only worth offering them a lower sum if I am able to make a payment in full??