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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 6009
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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I've been looking at how much Capital Gains Tax I would have

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I've been looking at how much Capital Gains Tax I would have to pay when I sell my house - I bought it in April 2013 and I hope to sell it in April 2020 - I lived in the house from April 2013 until September 2015 (I moved in with my partner who is now my wife) I have rented the house out since September 2015 (we pay tax on the profit from the rent every year) - I've read a few articles about how to reduce the final Capital Gains Tax bill - such as removing the cost of purchase (£2,000), the cost of selling (£3,500), £12,000 government allowance and either or Private Residence Relief and or Letting Relief - once this has been removed you take 18% (i don't pay the higher rate income tax) from the total profit to give you your tax bill - I bought the house for £113,500 and hope to sell it for £170,000 - I hope you can give me a more accurate idea of how much Capital Gains Tax i should expect to have to pay...Kind regards, ***** *****
JA: Anything else you want the Accountant to know before I connect you?
Customer: the only other thing which might have an effect on our final tax bill - we are planning to buy a small property in Spain with the equity from the sale of the property...thanks, Francis

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Please bear with me as I am doing some calculations.

Many thanks

Thank you for your patience.

Attached is my CGT calculation for your perusal.

I advise you to sell your property before 5 Apr 2020 as there are changes being introduced from 6 Apr 2020 that would have an adverse effect on reliefs available to you.

My calculation assumes you sell in the current tax year.

My aim is to give you a professional service. I hope this is helpful and answers your question.

Please remember to rate my service by selecting the 5 stars at the top of the screen before you leave JA today. If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.

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Customer: replied 6 days ago.
Thank you for you very fast reply/calculation...could you please just confirm that I have understood your calculations correctly....so if we were to sell the property before April 2020, and assuming the all the information I sent you was accurate, you calculate that we wouldn't be liable to pay any capital gains tax? My second question is - when selling a house as in my example, how is the final CGT calculation assessed - is it done by me independently or by the solicitors and if is done by me - would i be able to use your calculations when completing the CGT forms etc. Thanks again, Francis

Francis, thank you for your reply.

I can confirm no CGT would be payable based on information provided.

You can use my calculations to complete your tax return. You need to supply the information yourself when you complete capital gains section of tax return

I thank you for accepting my answer.

Best wishes.