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taxadvisor.uk
taxadvisor.uk, 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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I have a flat that i lived in till jan 2007 and my husband

Customer Question

Hi
I have a flat that i lived in till jan 2007 and my husband till jan 2008. We moved abroad because of work. I moved first and rented the flat till april 2015. I moved back to the uk in oct 2014 and my husband june 2015 for work but did not return to the flat as my place of work is too far to commute from the flat in Clapham. As a result in march 2015 we purchased a house in berkshire and determined to sell the london flat after the completion of renovations that were started in april 2015.
We also own a 25 % share in a flat by the seaside in kent under two hours from our berkshire main residence and have owned this since april 2014.
If we sell the london flat will we need to pay capital gains tax
Thanks
Sadie
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question...I will need to know the following to ascertain whether you would pay CGT on sale of London flat.- date of purchase- is ownership in joint names- did you own another property whilst abroad or did you rent one- likely capital gain before any costs associated with improvements (see below)- any capital expenditure on improvements to the flat Many thanks
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.
Customer: replied 1 year ago.
Property was bought in 2006 in joint names.
We owned a place in NL that we sold in 2015
Property was bought for 312 and may be worth 560. In total have spent around 30 k on improvements in last year
Expert:  taxadvisor.uk replied 1 year ago.
I have sent you an offer for live phone call Many thanks
Customer: replied 1 year ago.
Have declined, thanks
Customer: replied 1 year ago.
Have sent you the info you requested however
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply.You have stated that your husband was resident in the property until Jan 2008.Property let Feb 2008 to Mar 2015.Please advise month of purchase in 2006. many thanks
Customer: replied 1 year ago.
July
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply.I will revert to you with CGT calculations shortly. Many thanks
Customer: replied 1 year ago.
Thanks, ***** ***** it
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your patienceAttached are my calculations for your perusal.More information on private residence relief can be found herehttps://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief 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.
Expert:  taxadvisor.uk replied 1 year ago.
Please ignore the calculation.. just spotted an errorresending it shortly Many thanks
Expert:  taxadvisor.uk replied 1 year ago.
revised calculations attached Many thanks
Customer: replied 1 year ago.
Dont i need to deduct things like stamp duty and solicitors fees when i bough- around 10k and estate agents fees assuming a sale of 560 if we go ahead plus selling costs. This would be around 11k so 21 in total. In the time we rented we also paid service charge of 1100 each year and mortgage costs of around 75k
Customer: replied 1 year ago.
So 21 k costs for buying and selling. 75 k for mortgage since 2006 approx and around 11 k in service charge since 2006
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your replyBuying and selling costs are the only ones that are deductible.Mortgage costs and service charge are revenue allowable costs against rental income for the period the property is let.revised calculations incorporating £21k costs attached
Customer: replied 1 year ago.
Are you able to deduct any costs against the house in nl at all or is that separate as we paid up all taxes etc on that with the dutch inland revenue
Expert:  taxadvisor.uk replied 1 year ago.
Each property is dealt with separately. I hope this is helpful and answers your question.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.
taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
I will. Can you not put the conversation on the public questions listed as it has confidential infoThanks for your help
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply.You should make this request to Just Answer Customer Support Service.Thanks for your good words. I hope this is helpful and answers your question.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.
Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer. Best wishes

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