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Sam, Accountant
Category: Tax
Satisfied Customers: 7544
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I bought a house in 2008 for 110k to live in as I was splitting

Customer Question

I bought a house in 2008 for 110k to live in as I was splitting from wife at that time I spent over 100k on an extension and other work I moved in but within a few months my wife I parted from was diagnosed with cancer and I moved back to care for her I did nothing with the other house and then some friends asked if they could rent for a short period I did this in the end I stayed with my wife who got another cancer diagnoses we sold the house for 220k the tax man has now come to me for capital gains and also I hadn't put the rent £609 a month for 10 months in my tax return I only kept my building invoice for 50k as I kept that for a guarantee all the other work as it was my home I never got receipts or I'd i did I know longer have them were do I stand ?
Submitted: 4 years ago.
Category: Tax
Expert:  Sam replied 4 years ago.

Hi Thanks for your question my name is XXXXX XXXXX I am one of the UK tax experts here on Just Answer. I am sorry to hear, of your wife's illness and also the position you now find yourself in with the tax man.


Can you advise

1) When did the building of the extension take place, and did you do this yourself OR have a builder undertake this for you - if you have one building invoice for £50K - what was the other £50K spent on (as you would seem to suggest this was many different elements)

2) When did you move into the property and when did you move out (months and year)

3) When was the property sold (month and year)

4) You advise that you rented it out for 10 months - could you advise the dates

5) Aprpox legal and estate agent costs to buy and sell



As the capital gain position may be no where near as bad as you fear - although tax will be due on the rental income which should have been declared at the time - however on this note can you recall


1) What the mortgage interest part of the loan repayment was at this time

2) Building insurance for the year (and contents too if the property was let furnished)

3) Any repairs undertaken whilst you had tenants in the property As again the rental position may not be as bad as you fear.



Finally when did HMRC get in touch with you, and what specifically are they asking for information on. I am about to have a meeting with clients - but will respond as soon as I can if that is acceptable Thanks Sam