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