Thanks for your question
Can I ask was this a limited company in which the commercial aspect of the property was sued - or a sole trader (or did you just collect rents and let out the retail element to another trader)
What was the split value between the flat and retail part or purcahse and sale and had the flat been your main home throughout ownership?
You need to establish a split if you wish to take advantage of entrepreneurs relief - which will allow some of the gain to be liable at 10%
Or it will be the sale price less the purchase price - this forms the initial gain from which you can deduct the costs to sell (estate agent and legal fees) and the costs to purchase. You can also deduct any capital improvements (such as new kitchen bathroom etc)
Then whats left over forms the gain - as you do not have split prices you will have to split this figure as per sq footage to represent the flat and the retail part.
The flat also will form part of the retail element up until th date you moved in - so this then needs to be split furtehr so your personal part can be considered, and 1 year /total period of ownership will be considered for tax releif - private residence relief.
When this is deducted the the exemption is applied (£11000 for 2015/2016 £11,100 for 2016/2017) ) and the reminder is liable to capital gains tax.
the rate is based on your annual income for the year of sale
If you are a high rate taxpayer then all the gain will be at 28% and if you have a basic rate tax position then any unsed basic rate band can allow the equivalent gain to be charged at 20% and then any remianing gain at 28%.
Let me know if I can assist further
Hi Wayne thanks for your further question
The £11,100 is the annual exemption allowance (so you would get this regardless of whether you had lived there or not)
The private residence relief is based on the gain x sq footage attributable to the flat x 1 year/total years of ownership
If you wish me to make a full calculation for you then I am afraid this will involve an additional charge - as this is work over and above general advise.
If you wish to proceed then I can send you an additional services request and I would also need to know when you purchased the property and its value - and the date of sale and the sale price and the actual month you moved into the flat
Also what the £5700 refurb costs were used for (to be sure they are allowable costs)
What trade you conducted in the retail unit - and has this trade ceased or just moved - and when the trade ceased
I do apologise - for some reason your acceptance did not trigger a notification email to me.
Can I also ask for the costs to sell and buy (so any estate agent fees or legal fees) and re the refurb for the shop - the toilet will be allowable but not the racking (but the racking will be deductible against your trade profits)
So how much was the toilet to install ?
I am calculating the full position for you - (Both private and business) and then will provide an overall position
I will respond in about 10 minutes
So the initial gain is £105,000 sale price less purcahse price £55,000 = £50,00
Total period of ownership 136 months - and of this flat main residence for 15 months
From this we can then split the gain to reflect private and business
Flat 67% of £50,000 = £33,500
Less 67% fees of £4265 = £2858
Less Refurb £4030
Leaves gain of £26612
Private residence relief £26612 x 15/136 = £2935 exempt
Leaving a gain of £23,677 chargeable gain
Less annual exemption allowance of £11,100
Leaves a chargeable (personal) gain of £12577 liable to 28% (If you are a higher rate taxpayer or 18% if you have more than £12577 unused basic rate band - or a mix of the two rates - I can advsie further)But if Higher rate (at 28%) = £3521.56
Business Retail Trade 33% x £55,000 = £18150
Fees 33% of £4265 = £1408
Leaves gain of £16,142
Now as you have sold this asset but continue to trade you claim claim Entrepreneurs relief so the tax due on this element of the gain will just be at 10% = £1614.20
Then the personal capital gain bill £3521.56
Total capital gain bill £5135.76
You are very welcome Wayne