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I HAVE A BUY TO LET FLATS IN UKI SOLD ONE OF THEM 0N 16 APRIL 2013I HA

Customer Question

I HAVE A BUY TO LET FLATS IN UK
I SOLD ONE OF THEM 0N 16 APRIL 2013
I HAVE TO DO MY RETURNS
HOW TO CLAIM ALL THE COSTING AND HOW MUCH WILL I PAY
IT HAS BEEN DECLARED IN JOINT NAMES FROM DAY ONE
BUT THE MORTGAGE IS ON MY NAME AS BUY TO LET
I ALSO HAD A PROPERTY IN SPAIN WHICH I HAD TO GIVE BACK TO THE BANK 4 YEARS AGO AND TAKE A PERSONAL LOAN SHORTFALL, CAN I CLAIM THIS IN THIS YEAR TAX RETURN
I HAVE LOST SOME GOOD AMOUNT IN FOREX AND IN BUSINESS WITH OVERSEA CLIENT CAN I CLAIM THEM IN THIS YEAR TAX RETURN
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.

Thanks question
First I should advise that if the flats is in your name only with the mortgage then only you should have been declaring all the rental income as its owned solely by you. so this will need rectifying.
You will then need to review whether you have a capital gain to declare.
This is the sale value, less the purchase value, which forms the initial gain.
From the initial gain you then deducts the costs to buy and sell, such as legal fees, estate agents fees, stamp duty etc, and also the costs of any capital improvements such as new kitchen or bathroom.
Once these deductions have been made, then the amount left over is considered or any tax reliefs, you do not indicate whether this was at any time your home, so this would mean no tax reliefs are due.
Then whatever is left over (if any amount) the first £10,900 is tax free- as this is your annual exemption allowance and the reminder is liable to capital gains tax.
If you could advise how much your normal annual income is, and this final capital gain figure (after deducting the costs and the annual exemption allowance) then I can provide the amount of capital gains that will arise.
When you gave the property back to the bank 4 years ago did you declare this to HMRC at the time, along with a any rental income you may have earned during the period of ownership. if so please advise further
I am afraid Forex trading losses, are yours to bear as HMRC do not tax you on profits as its not deemed to be a trade unless you spread bet as a living, and finally and did you declare self employment income business on which you advise you have now made losses?
Tell me amore about the business income and the Forex trading if you acted on behalf of others, and whether HMRC are aware of the profits you have previously made.
Thanks
Sam
Expert:  Sam replied 1 year ago.

Thanks other posted question, but you just need to respond via this original question thread.
I need to know
If you could advise how much your normal annual income is, and this final capital gain figure (after deducting the costs and the annual exemption allowance) then I can provide the amount of capital gains that will arise.
When you gave the property back to the bank 4 years ago did you declare this to HMRC at the time, along with a any rental income you may have earned during the period of ownership. if so please advise further
I am afraid Forex trading losses, are yours to bear as HMRC do not tax you on profits as its not deemed to be a trade unless you spread bet as a living, and finally and did you declare self employment income business on which you advise you have now made losses?
Tell me amore about the business income and the Forex trading if you acted on behalf of others, and whether HMRC are aware of the profits you have previously made.
Thanks
Sam
Customer: replied 1 year ago.










































































































































































































































































































































CLAIMEDDATEMONEY RECEIVEDWEEKNETTTELECAR
24 WKSFROM SOCIALNo.AMOUNTBILLEXPENSE
08/04/2013142142.003921/09/2013TO29/09/2013505.58-35
143.4024/04/201310.1510.154030/09/2013TO06/10/2013590.14
1720.8009/05/2013275.964107/10/2013TO13/10/2013342.35-35
15/05/2013143.404214/10/2013TO20/10/2013490.44
-1862.1130/05/2013143.404321/10/2013TO27/10/2013103.45
12/06/2013143.404428/10/2013TO03/11/2013321.67
-141.3131/07/2013430.204504/11/2013TO10/11/2013664.09-35
14/08/2013143.404611/11/2013TO17/11/2013333.09
21/08/2013143.404718/11/2013TO24/11/2013276.73
04/09/2013143.404825/11/2013TO01/12/2013236.05
18/09/2013143.404902/12/2013TO08/12/2013269.64-35
5009/12/2013TO15/12/2013353.7
TOTAL1862.115116/12/2013TO22/12/2013248.7
5223/12/2013TO29/12/2013418.36
JOB CENTRE FIGURE IS 1699.82130/12/2013TO05/01/2014335.38
YEAR 2013/2014206/01/2014TO12/01/2014202.06-35
313/01/2014TO19/01/2014104.7
420/01/2014TO26/01/201411.7
527/01/2014TO02/02/2014
603/02/2014TO09/02/2014-35
710/02/2014TO16/02/2014
817/02/2014TO23/02/2014
924/02/2014TO02/03/2014
1003/03/2014TO09/03/2014-76.25-35
1110/03/2014TO16/03/2014
A17/03/2014TO23/03/201413.65
5613.82FROM MINI CAB TAXIB24/03/2014TO30/03/2014463.59-350
1699.82FROM SOCIAL SECURITY
6208.82-245-350
TOTAL7313.64INCOME 2014 TO 2014NETT5613.82
PROPERTY BOUGHT ON 16/04/2004 FOR291000PROPERTY SOLD ON 12/04/2013430000
COST WHEN ACQUIREDCOST WHEN SOLD
SOILICTORS COST1342ESTATE AGENT FEES-10320
STAMP DUTY1711SOLICITORS COST-3228
MORTGAGE BROKER FEES1000TO DO THE DAMAGE AND REPAIRING
AGENT FINDERS FEES6838THE PROPERTY BEFORE PUTTING
ON THE MARKET-13000
1089110891
TOTAL SELLING EXPENSES-26548-26548
TOTAL AQUIRED COSTING301891
NETT IN HAND403452
SOLD403452
BOUGHT301891
NETT PROFIT AFTER ALL DEDUCTION DONE101561
MY LOSS CARRY FORWARD IS 11711.00
Expert:  Sam replied 1 year ago.

Thanks response
I cannot read the information provided in the format it is and in fact just need an answer to the questions asked
Thanks
Sam
Expert:  Sam replied 1 year ago.
Mahesh
Are you able to provide the information asked for
Thanks
Sam
Customer: replied 1 year ago.

  • PROPERTY BOUGHT ON 16/04/2004 FOR £291000

  • COST WHEN ACQUIRED:

  • SOILICTORS COST 1342

  • STAMP DUTY 1711

  • MORTGAGE BROOKER FEE 1000

  • AGENT FINDERS FEES 6838

    • TOTAL £10891

    • Grand total £301891



xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx



  • PROPERTY SOLD ON 12/04/2013 FOR £430000


  • COST WHEN SOLD:

  • ESTATE AGENT FEES 10320

  • SOLICITORS COST 3228

  • TO DO THE DAMGE AND REPAIRING 13000

  • TOTAL SELLING EXPENSES £26548



      • NETT IN HAND £403452







  • I had lost my job and was claiming

  • benifiet from social from

  • 1ST April 2013 to 18th Sept 2013

  • I had claimed £1699.82

  • I started mini cab taxi service from

  • 21st Sept 2013 onwards as self employed

  • My earning after taking my

  • fuel and rental expenses is £5613.82


TOTAL EARNING IS £7313.64

Expert:  Sam replied 1 year ago.
Mahesh
I am really confused as you initially advised that aside from the sale of the flat which I have advised how to calculate the capital gain, and what is an isn't allowable, I was needing more information on the Forex trading and the business losses you advise you have made.
You advised
I ALSO HAD A PROPERTY IN SPAIN WHICH I HAD TO GIVE BACK TO THE BANK 4 YEARS AGO AND TAKE A PERSONAL LOAN SHORTFALL, CAN I CLAIM THIS IN THIS YEAR TAX RETURN
I asked information on this, by asking
When you gave the property back to the bank 4 years ago did you declare this to HMRC at the time, along with a any rental income you may have earned during the period of ownership. if so please advise further
You then also advised
I HAVE LOST SOME GOOD AMOUNT IN FOREX AND IN BUSINESS WITH OVERSEA CLIENT CAN I CLAIM THEM IN THIS YEAR TAX RETURN
and I advised
I am afraid Forex trading losses, are yours to bear as HMRC do not tax you on profits as its not deemed to be a trade unless you spread bet as a living, and finally and did you declare self employment income business on which you advise you have now made losses?
Tell me amore about the business income and the Forex trading if you acted on behalf of others, and whether HMRC are aware of the profits you have previously made.
Now you are providing figures re the sale of the property and advising you were self employed, this is not what you originally asked with - and I am happy to answer the questions you initially asked (if you will provide me with the information asked for)
But if you need help completing the tax return then this I can assist with but will send an additional service request.
Thanks
Sam
Customer: replied 1 year ago.

You have received an Answer!



SAM

ALL YOU QUESTIONS ANSWERED AND UNDERLINED

MAHESH

From Sam



10 January 2015 17:13 (GMT/GMT)





Thanks question

First I should advise that if the flats is in your name only with the mortgage then only you should have been declaring all the rental income as its owned solely by you. so this will need rectifying.

You will then need to review whether you have a capital gain to declare.

This is the sale value, less the purchase value, which forms the initial gain.

From the initial gain you then deducts the costs to buy and sell, such as legal fees, estate agents fees, stamp duty etc, and also the costs of any capital improvements such as new kitchen or bathroom.

Once these deductions have been made, then the amount left over is considered or any tax reliefs, you do not indicate whether this was at any time your home, so this would mean no tax reliefs are due.

Then whatever is left over (if any amount) the first £10,900 is tax free- as this is your annual exemption allowance and the reminder is liable to capital gains tax.

If you could advise how much your normal annual income is, and this final capital gain figure (after deducting the costs and the annual exemption allowance) then I can provide the amount of capital gains that will arise.


TOTAL NORMAL EARNING IS £7475.93

NETT PROPERTY SURPLUS £101561





When you gave the property back to the bank 4 years ago did you declare this to HMRC at the time, along with a any rental income you may have earned during the period of ownership. if so please advise further

NO BUT I DID PAY ALL THE TAX AS PER SPANISH LAW

I am afraid Forex trading losses, are yours to bear as HMRC do not tax you on profits as its not deemed to be a trade unless you spread bet as a living,

OK

and finally and did you declare self employment income business on which you advise you have now made losses?

NO THIS WAS IN 2013

Tell me amore about the business income and the Forex trading if you acted on behalf of others, and whether HMRC are aware of the profits you have previously made.

NO I DID NOT ACT


Thanks

Sam


I am really confused as you initially advised that aside from the sale of the flat which I have advised how to calculate the capital gain, and what is an isn't allowable, I was needing more information on the Forex trading and the business losses you advise you have made.

SORRY CONFUSSION


You advised
I ALSO HAD A PROPERTY IN SPAIN WHICH I HAD TO GIVE BACK TO THE BANK 4 YEARS AGO AND TAKE A PERSONAL LOAN SHORTFALL, CAN I CLAIM THIS IN THIS YEAR TAX RETURN

I asked information on this, by asking

When you gave the property back to the bank 4 years ago did you declare this to HMRC at the time, along with a any rental income you may have earned during the period of ownership. if so please advise further


NO I DID NOT BUT PAID ALL THE TAXES AS PER SPANISH LAW


You then also advised

I HAVE LOST SOME GOOD AMOUNT IN FOREX AND IN BUSINESS WITH OVERSEA CLIENT CAN I CLAIM THEM IN THIS YEAR TAX RETURN

FOREX AND OVERSEA IS TWO DIFFERENT THINGS



and I advised
I am afraid Forex trading losses, are yours to bear as HMRC do not tax you on profits as its not deemed to be a trade unless you spread bet as a living, and finally and did you declare self employment income business on which you advise you have now made losses?

OK UNDERSTOOD THIS ANSWER ABOUT FOREX

Tell me amore about the business income and the Forex trading if you acted on behalf of others, and whether HMRC are aware of the profits you have previously made.

Now you are providing figures re the sale of the property and advising you were self employed, this is not what you originally asked with - and I am happy to answer the questions you initially asked (if you will provide me with the information asked for)
But if you need help completing the tax return then this I can assist with but will send an additional service request.

EXPLAIN THIS HOW YOU CAN HELP AND HOW MUCH IS THE QUESTION GOING TO COST



Thanks

Sam
Expert:  Sam replied 1 year ago.

Thanks your responses - please note that the information I needed regarding the original question asked (and to help you with your initial enquiry is all included in the amount you offered (so no extra charge) but if you then wish to have assistance with completing the tax return (as you haven supplied lots of figures) this will cost more, and we can discuss this further - if you still need that further help.
But , you advise that the capital gain on the property will be £101,561 after all deductions and the annual exemption allowance, and that your normal annual income is £7475 - so your capital gain will be £31865 at 18% = £5735.70 and the remainder at 28% = £19514.88 so a total of £25,250.58
As you did not declare the disposal of the Spanish property - this can only be taken into account IF you now make a full declaration of the property with HMRC. But as this is more than 3 years ago, it may be that HMRC will not consider this, so you need to write and ask them (or amend your self assessment tax return to advise them of this capital loss) so you can bring this forward to use tax year against the gain now made.
You then advise that you had a business and self employment from 2013 and made losses. so did you declare this to the tax office (In 2013 and earlier) years that you had this business -
Are you no longer in business ?
You still have not given any more information about the overseas losses you made - is this connected with the business you made losses on? Tell me what looses and whether the tax office know about this business and the losses
I look forward to hearing from you (and these further questions ALL fall within the amount you have already paid to Just Answer)
Thanks
Sam
Customer: replied 1 year ago.

As you did not declare the disposal of the Spanish property - this can only be taken into account IF you now make a full declaration of the property with HMRC. But as this is more than 3 years ago, it may be that HMRC will not consider this, so you need to write and ask them (or amend your self assessment tax return to advise them of this capital loss) so you can bring this forward to use tax year against the gain now made.

OK UNDERSTOOD AND WE DO NOT BRING THIS UP

You then advise that you had a business and self employment from 2013 and made losses. so did you declare this to the tax office (In 2013 and earlier) years that you had this business -
Are you no longer in business ?

NO AS IT WAS AFTER THE APRIL 2013 SINCE THE LOSS I HAVE STOPPED IT

You still have not given any more information about the overseas losses you made - is this connected with the business you made losses on? Tell me what looses and whether the tax office know about this business and the losses

YES IT RELATED TO ABOVE QUESTION, NO TAX OFFICE DOES NOT KNOW ABOUT THIS AS IT WAS AFTER APRIL 2013

I look forward to hearing from you (and these further questions ALL fall within the amount you have already paid to Just Answer)

Thanks

Sam

Expert:  Sam replied 1 year ago.
Mahesh
Thanks further response
You should have advised HMRC when the overseas business/self employment began - so you will need to ensure that this business and your income as (I assume) a sole trader is registered with HMRC. You will be fined £100 late registration penalty and owe Class 2 National Insurance if a sole trader.
So can you advise me about what sort of business this was, and how much you earned, and how come such large losses were made, then I can advise further, as to whether you can claim these losses
Thanks
Sam
Customer: replied 1 year ago.

1. Having completed my self assemsnet return calculations -14, I see that I have an unutilised personal allowance of some £4,000. Am I able to offset this unused personal allowance against the balance of my chargeable gain on the disposable of a propertty in the same year?

2. I also have income losses carried forward of £11,181 from a handful of properties which i still own and let. Am i able to utilise these carry forward losses against the chargeable gain on the disposal of the property mentioned in (1) above?

Expert:  Sam replied 1 year ago.

Thanks new questions, which should be listed as a new question as this is over and above what your original question suggested and I am sure you can appreciate I have already undertaken a vast amount of work to help you.
So I have issued you with an additional Q & A e=request
Thanks
Sam

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