Sorry, the property was purchased for £100,000. Contract exchange was 17th April 2014
Hi again.You should refer to HS283 here for information on the main home and CGT.You made a gain of £150,000, £75,000 for each of you and your husband. You can deduct the costs of buying and selling the property (legal fees, stamp duty, survey fees, selling agent fees etc) which will reduce the gain. By August 2014, you had owned the property for 162 months of which you lived in it for 118, let it for 40 and it was vacant for 4. The following figures are for each of you:The gain for the period the property was your main home will be exempt from CGT as will the gain for the last 18 months of ownership. That accounts for £62,963 (£75,000 / 162 months x 136 months). The remaining non-exempt gain is £12,037 and this covers that part of the letting period not covered by the last 18 months of ownership (£158,000 / 162 x 26).As the property has been both your main home and let, you will be entitled to a further deduction called letting relief which will be the lesser of:1 £40,000,2 the sum of the gain for the period that the property was your main home and the gain for the last 18 months of ownership, £62,963 and3 the gain for the letting period, £12,037.Letting relief of £12,037 will reduce the remaining non-exempt gain of £12,037 to £0. There will be no CGT to pay.I hope this helps but let me know if you have any further questions.
Thanks Tony. Do I still have to fill in CGT form and if so, do I have to show the calculations that I don't have to pay CGT? Do we both (my husband and I) have to fill in the cgt form separately? Can I print the page with your calculation and use it in CGT (if needed) ? If we don't have to pay CGT is there any point me including solicitors fee, etc... to reduce the CG value?
Hi, Tony, can you please explain how did you get £158,000 (£158,000 / 162 x 26)?
ok thanks. But what the 26 represents?
I am filling online capital gains tax forms and one of the questions is 'DEDUCTIONS, IF ANY, IN RESPECT OF RELIEFS AND ELECTIONS.' What figure do I put there?
Another questions is : 'IF YOU ARE MAKING ANY CLAIMS AND ELECTIONS, SELECT THE RELEVANT CODE' and there is a choice of Private residence relief and letting relieve, but I can only select one.
What do I chose?
If i fill in paper form CG1 which boxes do I need to fill in?
Would that be box 3 - total gain (£75,000)
and box 8 Adjustment to Capital Gains Tax -also £75,000?
And then CG2 boxes 30, 31, 32, 33, 35 and 37?
and also Box 33 (should be 31-32)? please confirm
i will be completing the paper form, I think it is easier.