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Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
What were the costs of the refurbishment, please?
Your gain is 485 - 340 - 80 = 65K. Now you say 'we' in your question so I assume you own it jointly with your wife. In that case 65 / 2 = 32.5K of gain is against each of you. Now deduct your non cumulative Annual Exempt Amount (AEA) of 11.3K leaves 21.2K exposed to tax at 18% or 28% or a combination of the two rates depending on the individuals' income including the gain in the tax year of disposal. A worst case scenario is a tax bill of a tad under 6K each.
I do hope that you have found my reply of some assistance.
You do not have to declare it until you complete your self assessment tax return at the end of the tax year [5 April]. It does not have to be paid until 31 January in the following year. Any rate of exchange used must be from the HMRC rates which you can find on line.
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It it does not matter when the sales are completed, actually it's the contract exchange date that determines the exact time. In any event PRR will apply whenever and however the buildings and land are disposed of.
PRR is Private Residence Relief which relieves CGT at 100%. Many people do not realise that when they sell their house at a profit then that is liable to CGT because PRR is given automatically.
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As the whole site is withing the permitted area PRR always applies so you can sell whenever and however you like.
As I said it would not make the slightest bit of difference, PFF would still apply.
Thank you for your support.
In my last response delete 'PFF', insert 'PRR!'