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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 9428
Experience:  FCCA FCMA CGMA ACIS
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I had a property which I purchased in 1971 and since then it

Customer Question

I had a property which I purchased in 1971 and since then it has passed within the family with me always been on the deeds. I ran a business from there for 20 years and then rented out for past 9 years. will I have to pay cgt
JA: Have you talked to a tax professional about this?
Customer: Not yet. Am currently trying to gather information
JA: Anything else you want the Accountant to know before I connect you?
Customer: I have been offered 350k for it now and bought it in 1971 for 85k
Submitted: 13 days ago.
Category: Tax
Expert:  bigduckontax replied 12 days ago.

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

Your gain is 325K - 85K = 240K. Your total ownership time is say 50 years. Your letting time is 8.25 years as for the last 9 months of ownership you are deemed to be in residence even if this is not the case. Thus 8.25 / 50 = say so 16.5% of the gain is exposed to CGT. 16.5% of 240K is 39.6K Now knock off your non cumulative Annual Exempt Amount (AEA) of 12.3K leaves leaves 27.3K exposed to CGT at 18% or 28% or a combination of the two rates depending on your total income including the gain in the tax year of disposal. A worst case scenario would be a tax bill of a tad under 8K.

Customer: replied 12 days ago.
This was a commercial property from which I ran a business from. So is the total period I ran a business from exempt
Expert:  bigduckontax replied 12 days ago.

Then you will be liable for the full gain 240K, but at 10% or 20%. Worst case scenario wold be a tax bill of say 46K