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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 16669
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Capital gain tax Assistant: What are the assets or property

This answer was rated:

Capital gain tax
Assistant: What are the assets or property for this capital gain?
Customer: House
Assistant: Anything else you want the Accountant to know before I connect you?
Customer: no

Hi. My name is Tony. I'm looking at your question now and will post my answer or ask for more information here in a short while.

What do you need to know?

Customer: replied 10 days ago.
I brought my property in 1998 and sold it in 2019
Customer: replied 10 days ago.
During that time I lived in the property from 1999 to 2011 then renters it out
Customer: replied 10 days ago.
How Lucy capital gains tax am I liable for
Customer: replied 10 days ago.
*much
Customer: replied 10 days ago.
I purchased the property for £98k and sold for £330k
Solicitor costs on purchase were approx £3k and selling £6500 including estate agent fees
I had and extension put onto the property and the garden landscaped whilst l was living there the estimated costs £34k I have receipts for the the majority of the building work but none for the garden
Customer: replied 10 days ago.
I rented the property out 2011

I need some more information.

 

Which month in 1998 did you buy it and which month in 2019 did you sell it? Which month in 1999 did you move in and which month in 2011 did you move out and let it?

 

 

Customer: replied 10 days ago.
April 1998 I purchased sorry it was sept 2010 when I rented it and sold in nov 2019
Customer: replied 10 days ago.
Apologies again it was purchased April 1999

Thanks.

 

Leave this with me while I draft my answer.

Customer: replied 10 days ago.
Thank you


Gain: £188,500 (£330,000 - £98,000 - £3,000 - £6,500 - £34,000)


Total period of ownership: 247 months

Period of occupation by you as owner: 136 months

Period of letting: 111 months


Exempt gain: £117,526 (£188,500 / 247 x 154 (136 months + last 18 months of ownership)

Letting period gain: £70,974 (£188,500 / 247 x 93 (111 months - last 18 months of ownership)

Gross Non-Exempt Gain: £70,974

Letting Relief: £40,000 (lesser of £40,000, £117,526 and £70,974)

Net Gain: £30,974

 

Annual CGT exemption: £12,000

 

Net Taxable Gain: £18,974

 

CGT will be charged on the net taxable gain at 18% or 28% or a combination of the two rates depending on the level of your income in 2019/20. If the sum of your income and the net taxable gain is £50,000 or less then you will pay CGT at 18%. If it is more, then you will pay some CGT at 18% and some at 28%.

 

I hope this helps but let me know if you have any further questions.

Customer: replied 10 days ago.
So I pay tax on the net taxable gain? If my current annual earnings are £15k I pay the lesser?

That's what my answer says.

Customer: replied 10 days ago.
That’s great many thanks for your help

Thanks. CGT at 18% will be £3,415.32.

 

Would you mind rating my answer before you leave the site please.

TonyTax and other Tax Specialists are ready to help you

Thanks.