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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4972
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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We bought main residence since Nov, 1985 for £77000. We bought

Resolved Question:

we bought main residence since Nov, 1985 for £77000.
We bought a new main residence home in November, 2009.
We had major construction done since that time till late 2011 while staying in the old main residence (but we changed my residence address to new home in April, 2010 as we were hare many times to get the work done).
We completely moved over to new main residence in 2011. I had construction work done in the old main residence and put it in the market in May 2013. This was sold off in November 2014 for £495000.
What Capital Gains tax I need to pay for having two main residences over 5 year period?
Submitted: 1 year ago.
Category: Tax
Expert: replied 1 year ago.
Thank you for your question..Just for clarification ...We are looking at CGT payable on the sale of your first home that was your main residence until Apr 2010 (change of address).What capital expenditure was incurred on the old house before it was put on the marketWhat were buying and selling costs pertaining to that property.Was it let at any point . ..if so, for what periodWas it jointly owned I will calculate your CGT payable once you have replied to my questions. many thanks
Customer: replied 1 year ago.
Thanks for your response.
We spent approx. £12000 in capital expense (new bathroom, new roof) and £5000 approx. in repairs and maintenance (replaced second bathroom suite, some kitchen units replaced, painting and decorating..)Buying costs in 1985 may have been approx. £3000 (I am guessing). Selling costs were approx. £9500.One room was sublet to a friend for short term to keep place occupied but that finished in 2013.The property was jointly owned by me and my wife.Please advise what paperwork I should prepare to submit all the details ( do I need to send it to tax office, as I plan to complete my tax on line).Thanks..
Expert: replied 1 year ago.
Thank you for your response.Was the property jointly owned?Was the property ever let once you moved out.. if so, for what period? many thanks
Customer: replied 1 year ago.
property was always jointly owned.Property was not let after we moved out.
Expert: replied 1 year ago.
Thank you..I will revert to you shortly with the calculations. many thanks
Expert: replied 1 year ago.
Thank you for your patienceAttached are CGT payable calculations showing worst scenarioassuming CGT rate 28%.You don't have to send any details to HMRC at this stage. 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.
Customer: replied 1 year ago.
Thanks.As I am higher rate tax payer, do I need to pay any higher amount?My wife is basic rate payer and does not pay on line, shall she pay her part directly to her tax office (or does she need to register and then pay)?Thanks for all your help.
Expert: replied 1 year ago.
Thank you for your reply.Your wife would have to register to report this capital gain..It will be too late to get a UTR number for her before the deadline of 31 Jan.I suggest you write to HMRC and explain there is a chargeable gain and that your wife does not file a tax return and enclose a cheque for the CGT payable. her share calculated at 18% and yours at 28%. I hope this is helpful.
Customer: replied 1 year ago.
Thanks very much for your help and regardsJoginder Puri
Expert: replied 1 year ago.
Thank you for your good words, Joginder. I will appreciate if you would kindly rate my service/accept the service I have provided before you leave the site, to ensure I get credited for it by Just Answer. and other Tax Specialists are ready to help you
Expert: replied 1 year ago.
I thank you for accepting my answer.
Best wishes.

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