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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4983
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am self employed and submit my own return each year.

Resolved Question:

Hi
I am self employed and submit my own return each year. However I have just sold my property and need advice as to how to calculate what Captial Gains tax I will be liable for
Thanks
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your question.

Please let me have more information and I will help you calculate CGT.

Many thanks

Customer: replied 1 year ago.
Thank you.
I will collate the info and send it through to you shortly.
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your reply.

I look forward to receiving the information.

Many thanks

Customer: replied 1 year ago.
Okay - I have some info but not sure what else is required:
Property bought 21.5.01 cost of purchase £44,639.75
Property sold 12.8.16 for £95,000.00
Fees for sale £1342.00There were rennovations carried out which included fitting new bathroom, kitchen and utility room along with replacing the gas boiler, doors and flooring.... I am still collating the figures for this but, so far there is £10,487.72 attributed to the works.The property was also rented out from 01 Jan 2014 until 31 March 2016 for £470 per month, but we paid the Council Tax of £836.99 Y1 and £844.60 Y2
Prior to this it was used as the family home for both my son and daughter - my husband & I moved to another area for work.
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for additional information..

You state "The property was rented from 1 Jan 2014 until 31 Mar 2016. Prior to this it was used as the family home for both my son and daughter - my husband & I moved to another area for work".

Was the property your only property and main residence at any point during period of ownership. If so, for how long and when di you move to another area for work?

Many thanks

Customer: replied 1 year ago.
It was my main home from when I bought it 21.5.01 until I remarried and we moved 2.4.2004 - my daughter moved with us but my son stayed in my house so I continued to pay the mortgage etc.
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your reply.

I will carry out CGT calculation and come back to you with my answer a bit later.

many thanks

Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your patience

Attached are my CGT calculations for your perusal.

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.
Thank you so much:-) Will I be able to fill in my CGT section of my tax return using the calculations you have provided me with? (I am quietly dreading it!)
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your reply.

the information would go in the tax return 2017 (tax year ending 5 Apr 2017) as sale of property took place in current tax year.

The figures needed for tax return are

Sale proceeds £95,000

gain made £38,530

Chargeable gain £11,163

I hope this is helpful.

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.
Many thanks once again - wonderful help!
Expert:  taxadvisor.uk replied 1 year ago.

I thank you for accepting my answer.

Your reward of a generous bonus is greatly appreciated.

Best wishes

Expert:  taxadvisor.uk replied 1 year ago.

I have reviewed my calculations and it appears I had allowed a higher figure for letting relief (a relief period counted twice). I have reperformed my CGT calculations and attach a revised figure for chargaeble gain.

My apologies for the inadvertent error.

Many thanks

Customer: replied 1 year ago.
Thank you for the update - I now have the figure for the Capital Improvements (rennovations etc) so instead of £10,488 we spent £14,480 (£14,479.72)
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your reply.

Attached is my working paper incorporating revised figure for capital improvements.

Many thanks

Customer: replied 1 year ago.
Thank you - are you able to determine which of the CGT % l will be charged? Or will I have to wait until the accounts are submitted?
Expert:  taxadvisor.uk replied 1 year ago.

Thank you for your reply.

If you are a basic rate tax payer and your income is less than £40,000 then by adding the gain you would still remain within the basic rate band and therefore CGT rate of 18% would apply.

I hope this is helpful.

Expert:  taxadvisor.uk replied 1 year ago.

I will be happy to help you complete your tax return for no additional charge.

Please contact me through this thread.

Many thanks