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bigduckontax, Accountant
Category: Tax
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I'm trying to work out how to fill in a capital gains work

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I'm trying to work out how to fill in a capital gains work sheet for an investment property I have sold. I have filled in the boxes for
disposal proceeds ( ie sale value.)
incidental costs of disposal ( ie solicitors fee, estate agents fee, mortgage repayment.)
net disposal proceeds
cost or market value ( ie what I paid for it)
incidental costs of acquisition (ie auction costs, servey fee, solicitors fee.)
improvement costs (ie what it cost me to make it habital.)
How do I calculate the gain or loss figure.
What are ? Deductions, if any, in respect of reliefs and elections.
Kind regards Dave
Hello Dave, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Your liability to Capital Gains Tax (CGT) is based on the gain. The gain is the difference between the net selling price and the acquisition price. The net disposal proceeds are the disposal proceeds less the incidental costs of disposal which include the advertising. The acquisition price is the cost or market value plus the incidental costs of acquisition (including Stamp Duty Land Tax) plus the improvement costs. The difference between the two is the gain. From this deduct your Annual Exempt Amount (AEA) of 11.1K and the remaining sum is taxed at 18% or 28% or a combination of the two rates depending on your income including the gain in the tax year of sale. I do hope that I have been able to clear the air for you with my answer.
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Thank you for your excellent support.