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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 14110
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I have a Capital gains Tax question where a client has

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Hi I have a Capital gains Tax question where a client has purchased ashare of a property jointly, then sold in two stages, spread over two years
Could do with some help on the expected CGT calculation please
Regards
Alistair Coomer
07867 544445

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Hi

Could you advsie me the relevant dates percentage of share and figures then please

Thanks

Sam

Sam and other Tax Specialists are ready to help you
Customer: replied 1 month ago.
Hi Sam
Sale of 25% property stake, but agreed for it to be paid in two tranches;
in 15-16 tax year received money representing gain of £32k
Used £11100 of CGT Allowance then
Invested £10k in EIS
Used £6000 of Property Enhancement permitted
Leaving 28% CGT on balance (32000-11100-10000-6000) = £4900 x 28% = £1372 CGT
Second tranche of money paid in 17/18 tax year, yielding £12k Gain now come in 17/18 year……would almost all be used up by £11300 CGT allowance
So only CGT of 28% tax on £700 = £196would this series of events and calculations be correct?
Thanks
Alistair

Hi

Further to out telephone conversation I clarify that the gain will have to all be treated as having arisen in 2015/2016 as the sale of the 25% arose in that year and in spite of the fact that the payments (equal to 15% 2015/2016 and 10% 2016/2017) were split over two years cannot be reflected as such as no separate sale actually took place in each of the years with two changes to the title deeds- it was one sale and just a lose agreement that this was paid over two years

This then allows you to utilise this fact to apply the EIS relief as appropriate along with the Property enhancement

Thanks

Sam

Customer: replied 1 month ago.
Hi Sam
Thanks for this answer
Could I ask you to chrionicle your qualifications and PI cover level (if any) for the record please?
Thanks
Regards
Alistair Coomer

Hi Alistair

You should be made aware that this is an information service and whilst we have to show an ability/expertise - to work within Just Answer does not offer assurances or professional qualification or coverage within its remit, and as I am provided this service from that stance - my professional affiliations and level of PI have no bearing within the medium in which the service has been provided and as we are unable to engage directly with customers on any formal one to one basis I cannot even link you to my own professional website which contains all the qualifications I possess (but does not publish my level of PI)

I am sorry I cannot assist further with this request

Thanks

Sam