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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4973
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I need a capital gain tax calculation for property sold

Customer Question

I need a capital gain tax calculation for property sold
Submitted: 2 years ago.
Category: Tax
Expert: replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

please expand on your question and I will try to help you.

Please give a background etc

Many thanks
Customer: replied 2 years ago.

My husband and I sold a property in July 2013 so I need to get a capital gains tax calculation for us both please - it was purchased by my husband in 1995 and was his main residence until May 2003, I also lived in the property as my main residence between May 2002 and May 2003 when we then bought a house together and moved in there in May 2003. We couldn't sell this flat at that time so decided to rent it out and did so between May 2004 until December 2012.

For my husband he has no income for tax year 2013-14

For me my income was £123,000 and tax paid was £42,000

what other information do you need to make this calculation ?

Expert: replied 2 years ago.
Thank you for your reply..

Please advise

- was the property in your husband's name only or in the name of both of you;
- date (month) property bought and amount paid;
- selling price of the property in Jul 2013

You may have lived in the property during period May 2002 - May 2003, but was the property in joint names then or just in your husband's name

Many thanks
Customer: replied 2 years ago.

The property was purchased by my husband in 1995, for £95,000 it was sold for £320,000

When I lived in the property as my main residence it was then in my husbands name only - we decided to put it into joint names later in case one of us died.

I am just trying to ascertain now my CGT liability ?

Expert: replied 2 years ago.

Thank you for your reply.

Please advise month of purchase in 1995.

I will revert to you with my calculations in the next 2-3 hours as I am expecting a client in 10 minutes.

Many thanks

Customer: replied 2 years ago.

purchase date was May 1996.

my losses from last tax years to carry forward are 24,989

cost of major renovations and improvements to the flat 21,300

legal and sale costs 9,400

let me know if you require further information

Expert: replied 2 years ago.

Thank you for your reply and for additional information.

Expert: replied 2 years ago.
I am resending the answer

Please bear with me
Expert: replied 2 years ago.

The good news is that there is no CGT payable as gain is covered by private residence relief, letting relief and gains allowance

CGT calculation

Sale of flat£320,000
Cost price£95,000
Capital improvements£21,300
Agents fees, solicitors fee and other costs - say£9,400
Total cost price£125,700
Period of ownership - months200
Period as main residence - months85
Private residence relief - months121
Potential capital gain (320,000-125,700)£194,300
Gain covered by private residence relief
(121/200) x 194,300£117,552
Gain subject to capital gains tax (194,300-117,552)£76,749
Letting relief - maximum£61,127
This is lower of
£40,000 x 2£80,000
Private residence relief£117,552
Gain on the part of the property that's been let£61,127
Net chargeable gain after letting relief£15,622

Net gain per owner (15,622/2) = £7,811

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

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