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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15917
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Doing my tax return bought a property ,000

Resolved Question:

Hello
doing my tax return
bought a property for 220,000 ( half owened by my wife) in 2003
lived in it until feb 2011
rented from April 2011 to Aug 2014
sold in decmber for 415,000
what relief an i alowed on the gains
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
(Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  TonyTax replied 1 year ago.
Hi. Can you tell me what month in 2003 you bought the property please.
Customer: replied 1 year ago.
december 2003
Customer: replied 1 year ago.
Hisorry sold it in October 2014
Expert:  TonyTax replied 1 year ago.
Thanks. Leave this with me while I do some calculations. I would be happy to call you after that but it will cost you more so would you prefer to look at the figures first and then decide whether you would like a call?
Customer: replied 1 year ago.
Hiyet me see the figures first , i should be able to get form filled in from there.If i struggle i may need a phone call.thanks
Expert:  TonyTax replied 1 year ago.
OK. The sums will take a bit of time for me to do and check so please bear with me.
Customer: replied 1 year ago.
no problem thanks
Expert:  TonyTax replied 1 year ago.
The following figures are based on the assumption that both you and your wife have owned the property jointly since December 2003. The gain will be £97,500 for each of you and your wife (£415,000 - £220,000 / 2). You can deduct the expenses of purchase and sale (legal fees, survey fees, search fees, stamp duty, selling agent fees etc) from the gain to make it smaller. You owned the property for 131 months of which you lived in it for 87, let it for 41 and it was vacant for 3. The following figures are for each of you and your wife individually: The gain for the period that the property was your main home and the gain for the last 18 months of ownership will be exempt from CGT. That amounts to £78,149 (£97,500 / 131 x 105). That leaves £19,351 which is split between that part of the letting period (£18,607 - £97500 / 131 x 25) ) and the vacant period (£744 - £97,500 / 131 x 1) not covered by the last 18 months of ownership. As the property was let as well as having been your main home, you will qualify for letting relief which will be £18,607 (the lesser of £40,000, £78,149 and £18,607). That will leave you with a taxable gain of £744 which is covered by the annual CGT exemption of £11,000 and so you will have no CGT to pay. I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.
Thank you very much..its how i thought it would work but needed to be sure...i just need to work out how to get that in to the the tax mans form :-)
Expert:  TonyTax replied 1 year ago.
Would you like a call?
TonyTax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
yes why not if you can talk me through how to fill the form in and i can get it over and done with

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