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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 7377
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You used the wrong selling price it wasn't sold for £245,000

Customer Question

Tony you used the wrong selling price it wasn't sold for £245,000 but £210,000
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.

Hi. My name is*****'m looking at your question now and will post my answer or ask for more information here in a short while.

Expert:  TonyTax replied 1 year ago.

I suggest you ask for a refund on this question as I've addresed your point about the sale proceeds in your original question which is where I saw it first.

Customer: replied 1 year ago.
But you calculated it on a selling price of £245,000 I sold for £210,000
Customer: replied 1 year ago.
Please see my original question
Customer: replied 1 year ago.
Which is why I queried the rather high amount
Expert:  TonyTax replied 1 year ago.

Hi. My name is*****'m looking at your question now and will post my answer or ask for more information here in a short while.

Expert:  TonyTax replied 1 year ago.

Here is the answer I posted in the other question:

Your accountant should refer to HS283 for information on the main home and CGT.

I'm assuming you sold the property in December 2015, not December 2016 and that it was let to the point of sale. The gain was £65,000 (£245,000 - £145,000). You can also deduct the costs of purchase and sale (legal fees, stamp duty, survey fees, selling agent fees).

Total period of ownership to December 2015: 152 months

Period of owner occupation: 32 months

Period of letting: 120 months

Exempt gain: £21,382 (£65,000/152 x 50 (32 months + last 18 months of ownership)

Letting period gain: £43,618 (£65,000/152 x 102 months (152 - last 18 months of ownership)

Gross Non-Exempt Gain: £43,618

Letting Relief: £21,382 (lesser of £40,000, £21,382 and £43,618)

Annual CGT Exemption: £11,000

Net Taxable Gain: £11,236

CGT @ 18% or 28% or a combination of the two rates depending on the level of your income in 2015/16. Look here to see how to calculate your CGT rate. Based on what you told me, you will pay CGT at 18% (£2,022.48).

Expert:  TonyTax replied 1 year ago.

You made a gain of £65,000. That is what I calculated the figures on. Look at the calculation, the figures in brackets in particular.

Customer: replied 1 year ago.
The gain was £65 k just confused by the £245,000 figure you have down , was that meant to read £210,000 then ?
Customer: replied 1 year ago.
Ok think I've got it , not good at this stuff why I needed you, thank you
Expert:  TonyTax replied 1 year ago.

Yes, that why I said it was a typo, a typing error.

Customer: replied 1 year ago.
Ok I'm straight now,
Expert:  TonyTax replied 1 year ago.

I mentioned the typo in the other question so you should ask for a refund on this version of the question.

http://ww2.justanswer.co.uk/en-gb/contact-us

Customer: replied 1 year ago.
Ok many thanks, ***** ***** typo bit, so sorry
Expert:  TonyTax replied 1 year ago.

No problem. I should have noticed it when I checked my answer before posting it.