Have Tax Questions? Ask a Tax Expert for Answers ASAP
(1) Can you give me more information about the "Lettings Relief instead of AEA which is available up to 40K depending, of course, on the actual rent received" - does this mean that I would have had to have received as much as £40K as rent to be eligible for this?
It seems that I have a choice between the AEA (11.5K) and some other amount relating to the rent I have received - it would be useful to know how I can calculate this other amount. Net of tax and agents' fees, my rent income has only been around £7500.
(2) In determining the acquistion price, I assume that I can include legal fees? Can I include stamp duty?
Can I just ask one more question about the CGT calculation, with some specific numbers, please? I am confused about the 18 months!
period of ownership: 159 months
period of my occupancy: 134
period left empty: 4
rented period: 21
Is the period that I do not have to pay CGT on equal to:
134+18 = 152
159 - (18+4+21) = 116
No, I have incorporated the 18 months in my calculation for you in my initial answer.
You can forget about the 4 months empty, you are allowed up to 12.
Sorry, Keith, I was confused about your initial answer, which is why I have asked for clarification - and I am still confused.
Your initial answer referred to a number (B) that you did not specify, nor indicate how it was calculated. It appears to be 26 months, but I do not know how you calculated this 26 - since you describe it as "time rented out plus 18 months"
Is the period I do not have to pay CGT
152 months or
116 months or
If it is 133 months, please let me know exactly how this is calculated, since it doesn't quite make sense to me. I know how to calculate the 152 and 116.
I am disappointed not to get a direct answer to a direct question about a numerical computation.
Yes, I want the detail. And I have asked (and paid for) a detailed answer. So I want to know how these calculations are derived.
It is not clear to me why "time rented out plus 18 months" = 26 months in your original answer. Once I understand this, then I will understand the 16.35% you have quoted. If I don't understand the calculations, then I am not sure whether I should use this number in my own sums.
I think that you made an error in your first calculation, and were not prepared to revisit it when I queried it. I am still left confused about the correct calculations.
Will you please, so that there is no confusion, state the dates during which the property was rented out.
The period of ownership was April 2002 to July 2015I lived there from April 2002 to May 2013empty period: June 2013 to September 2013rented period: October 2013 - July 2015
Let period 22 months less the last 18 = 4, thus only 4 / 159 = say 2.5% of the gain is subject to CGT which may well be covered by the AEA.
Apologies for the original error, I must have had a mental aberation, but it was just before dinner for me and I am an insulin dependent diabetic answering your question from a time zone 6 hours ahead of BST.
yes, this means that I will not have to pay any CGT - thank you for clarifying this.
Delighted to have been of assistance.
Please be so kind as to review my rating before you leave the Just Answer site. The current rating seems a tad unfair now we have resolved the matter.