Can you tell me what job your client's former husband was doing which required him to live in accommodation provided by his employer. Can you confirm that when the £99,000 was paid, the couple separated.
With regard to my clients CGT situation, can she offset Land Registry Document Fees, Land Charges Search Fees and Council Tax(For
the period April, 2014 to 11th December, 2014(Date of completion
of sale of house) and replacement of Carpet/(s) as well as any utility
bills for the period the house was empty?
Further to my earlier requests, and your answers, are the costs
for calculating the net profit(i.e.Legal/Accountancy/Professional)
allowable against the final Tax Liability.If so, how do suggest that
I word the relevant invoice?
Many thanks for your help.
The figure of £99K which I have been telling you about was a figure
that I took from my client's ex husbands Tax-Return for 2010-11.
However I have now been advised that this figure is part of a payment
of £100,320.82 which was shown on a court order dated July, 2010,
and this sum was paid to him during the same month.
It would appear from said tax-return that £1,000. of this figure
of £100,320.82 amounted to "Legal costs on Transfer". Could this
WHOLE amount of £100K + be offset against her Capital Gains
Tax liability given that the payment was made due to a court order?
Looking forward to your early reply. Will, of course endeavour to
get more detail of balance of £1,320.82(£100,3.20.82-£99,000.00)
Many thanks for your assistance.
P.S. Will deal with your payment side of things on reply.
Unfortunately rating "Face" has not appeared so that I can rate
your work, which is of course satisfactory. Please reply to this e-mail
(with face) so that I can rate you and you get paid.
Hi Tony. So this means that all you have received for answering
my questions is only £14.70? Is there any way we can make this up
to, say £25.00?
O.K. Tony Tax. Please now cancel my subscription to Just.Answer.UK
Tax with immediate effect and confirm. Many thanks for your kind
assistance and prompt responses.
Hi Tony Tax.
Tks. for your various answers to my questions. I have just one
more(I think!) and that is as follows.
With regard to the Tax percentage that my client will have to pay re
CGT., will HMRC calculate this on her GROSS earnings(i.e. BEFORE
her Personal allowance) or on the TOTAL of her earnings as set out below.
GROSS INCOME FROM EMPLOYMENT £27,300
CAPITAL GAIN ON SALE OF HOUSE £14,907
If this was the situation RE the CGT Rate, she would be charged
CGT at 28%. If, however, her Personal Allowance could be included,
then the following picture would be relevant.
GROSS INCOME FROM EMPLOYMENT: £27,300
LESS PERSONAL ALLOWANCE: (£10,140)
TAXABLE INCOME: £17,160
PROFIT ON SALE OF HOUSE £14,907
TOTAL INCOME: £32,067
Will her Tax Liability for 2014-15 be calculated on £42,207(at 40%)
(£31,866-£150,000.) or £32,067(@ 20%)?(I am hoping that I can
get some more expenses to reduce her Capital Gains Tax profit
to below £14,705.)
Looking forward to your answer.
Tks.for your answer. I have now calculated the final figures and
believe that her allowable expenses of £140.00(ONE-HUNDRED
AND FORTY-POUNDS ONLY) can also be taken into the calculations.
If so, I think that the following situation is relevant.
BASIC TAX RATE BAND 31,865
PERSONAL ALLOWANCE 10,140
GROSS INCOME: 27,300
HOUSE SALE PROF 14,907
TAXABLE AMOUNT AT HIGHER
RATE (C.G.T.) £ 202
£202. X 28%: £56.56
£14,705 X 18%: £2,646.90.
Taxable Profit at Higher Rate(28%) £202.00 56.56
Taxable Profit at Lower Rate(18%) £14,705 2,646.90
Tony, as I have said before, is there any way I can pay you some more money for all your very helpful advice? If possible, pse.reply
and send me the smiley face, (although your previous explanation
was very understandable.)
I would just deduct the £140 expense from the gain.There really is no need to pay me again. The only way that you could do that is by posting another question which mentions your name and stipulates that only I should answer it. I cannot get another smiley face on this question I'm afraid.
Many thanks for your kind help.-Message understood.
Thanks and good luck.