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Hello, I am one of the experts on Just Answer and pleased to be able to help you with our question.
Is this your sole or main domestic residence?
Your gain is 118K - 40K - 21K = 57K. Now deduct your non cumulative Annual Exempt Amount (AEA) of 11.3K leaves 45.7K exposed to Capital Gains tax (CGT) at 18% or 28% or a combination of the two rates depending on your income including the gain in the tax year of sale. In your case it will all be taxed at 28% so you are facing a tax bill of a tad under 13K. Don't worry about the Gov UK Web Site as the vendor sold it to you under priced, more fool him!
I do hope that you have found my reply of assistance.
Your acquisition cost includes the legal fees you had to spend in order to obtain possession.
The gain is the difference between the acquisition price and the net selling price. We have established the purchase price, but there are the buying costs which you have not quoted and the selling price is net after deduction of selling costs including advertising. However there is a snag which I have just noticed. It would appear that you are liable to Kuwait tax at 15%. However, under the Double Taxation Treaty between the UK and Kuwait, this is allowed as a tax credit against any UK liability on the same transaction.
If they are asking you for the information then play the daft laddie and tell the Department what they want. If it reduces your CGT bill all to the better.
But it is neither, they are asking you to do it so comply; then emulate Brer Fox, 'For he lay low and say nuffin.'
Thank you for your support.
Remember HMRC told you to do it!