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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 7113
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
Type Your Tax Question Here... is online now

I am currently completing my tax return online. I sold my

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I am currently completing my tax return online. I sold my house during the year. I moved out of the property to my husband's home following our marriage in December 2008. The property was for sale since then until the sale completed at the start of January 2019. Prior to moving out at the end of December 2018, this was my PPR. The only reason that I owned the property for so long after moving out was because it took a long time to sell. It was never rented out or used for any other purpose; it was vacant. How do I enter this in my tax return.

Hello and welcome to JustAnswer. I am here to help you.

Please advise

- Gain made from sale

- Sale proceeds

- Date moved out ( you have mentioned Dec 2008 and Dec 2018

- Date of purchase

I will send you my deatailed response in the morning.

Many thanks.

Customer: replied 7 months ago.
Sorry, I moved out 18/12/2008.
House sale completed 04/01/2019.
I purchased the house in 1998 (Contract Exchange 01/07/1998, Completion 08/10/1998) and lived there from 08/10/1998 until 18/12/2008.
House sold for £135,000
Purchase Price was £58,396
Other Intial Costs (Bathrooms, Tiles, Lighting, Flooring) £3,167.69
Solicitor and Estate Agent Fees combined: £4,882.10
My solicitor paid to my bank a Mortgage Redemption Payment of £16,746.29, including Mortgage Vacate Fee of £50.
Many thanks

Thank you for the information and your your patience.

Attached is CGT calculation for your perusal.

When completing capital gains section

gains in the year, before losses - £28,776

Are you making any claims or elections - YES

If you are making any claims or selctions, select the relevant code - PRR private residence relief

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.

Hi there

Just checking to see if you need more clarification/information or have I answered your question.

Many thanks

Customer: replied 7 months ago.
Thank you. Is there any allowance for the fact that the market collapsed around the time I put the house on the market, there was no interest in the house at all and that the house took so long to sell due to the market conditions?
Customer: replied 7 months ago.
Also are mortgage costs considered? I don't think so but just checking.

Thank you for your reply.

There is no allowance for collapse of market as such. Gain is calculated using actual sale proceeds and purchase price (historical numbers).

Mortgage settlement doesn't change profit/loss on sale.. it is return of capital borrowed, I'm afraid.

In my CGT calculation, I have assumed you are a basic rate taxpayer and applied CGT rate of 18%.

I hope this is helpful and answers your question. and other Tax Specialists are ready to help you
Customer: replied 7 months ago.
Many thanks
Customer: replied 7 months ago.
Aside from an employment severance payment under £30,000 which is tax free, my only other income for the year amounted to £3,549.38. Can the remainder of my personal tax allowance be off-set to reduce CGT payable?

Thank you for your reply.

I am sorry to say, you can't allocate unused personal income tax allowance against a capital gain.

I hope this is helpful.

Customer: replied 7 months ago.
Ok, thanks again

You are welcome.

Many thanks

Customer: replied 7 months ago.
Hi again. I am trying to determine what eligible costs I can include in Capital Improvements. There was a lot of work done to the house to make it habitable initially, flooring, light fixings, kitchen and bathrooms, over and above PC sums etc. I do not have receipts for all of these as I was not expecting to need them. Can I give a reasonable figure for these, possibly backed up by comparable estimates? Also can I include rates and or ground rent paid on the property?
Customer: replied 7 months ago.
I also heard that there may be an additional period of 12 months relief (over and above the 18 months) where someone cannot sell their home. Would this apply to me? I accepted the first offer that I received on the house.
Customer: replied 7 months ago.
Because of the market collapse and the fact that it took years to sell, I had to pay additional vacant possession insurance, pay a grass cutter to ensure the garden was presentable and pay a painter to pay the outside of the house to appeal to potential buyers. Is any of this eligible? Sorry for all the questions, just trying to finalise. Thank you
Customer: replied 7 months ago.
paint the outside of the house

Thank you for your reply.

All major repairs to make the property habitable including replacement of bathroom and kithen, all flooring etc would be deemed capital improvements and deductible from the capital gain.

Additional insurance charges, maintaining the garden and outside paint would be deemed repairs and maintenance and not deductible.

There is no additional period of 12 months relief over and above the final 18 months of ownership relief.

Many thanks

Customer: replied 7 months ago.
Thank you, ***** ***** receipts?

You would have issues if HMRC were to make enquiries and you were unable to substantiate the figures with supporting receipts.

Many thanks

Customer: replied 7 months ago.
Thanks again

Best wishes