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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5029
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I need some basic advice on UK captal gains tax. Is

Resolved Question:

Hi
I need some basic advice on UK captal gains tax. Is that something you can offer
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.

Hello and welcome to the site. Thank you for your question.

Please let me know what your question is and I will try to help you.

Many thanks

Customer: replied 2 years ago.

Hi

I have a property which i purchased in 2000 for £69,000. I live in it until around 2013 from whuch time i rented it out.

I have a £120,000 mortage on it currently and it is valued at £165,000.

I intend to seel the property.

Can you please help expalin my potential liability from Captital Gains tax and if and when this is payable (ie do the tax office get informaed of the sale via the land registry and charge me at the time of sale or di i need to make a tax return to pay any tax due?

Is there further information you require?

thank you

Expert:  taxadvisor.uk replied 2 years ago.

Thank you for your reply and for providing additional information.

You have not given me the date you purchased the property nor have you told me date property was first let. I have made these assumptions in my calculations

Date acquired in Jan 2000

Property first let from Jan 2013.

Here are my capital gains tax calculations

Potential capital gain

£96,000

Gain covered by private residence relief

(174/186) x 96,000

£89,806

Gain subject to capital gains tax (96,000-89,806)

£6,194

Letting relief - maximum

£6,194

This is lower of

£40,000 per owner

£40,000

Private residence relief

£89,806

Gain on the part of the property that's been let

£6,194

Net chargeable gain after letting relief

£0

Gain chargeable to CGT

£0

The good news is that there is no CGT payable as all gain is covered by private residence relief and letting relief.

You would have to declare this gain by completing supplementary pages SA108 – Capital gains summary and also show the calculation for private residence relief as above.

There is no CGT payable.

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.

taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

That is great news - thank you very much

Expert:  taxadvisor.uk replied 2 years ago.

I thank you for accepting my answer.

Thanks for your good words.