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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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How much CGT will I pay if ill sell a flat for £320000 and

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Hi how much CGT will I pay if ill sell a flat for £320000 and only owe £165000 ?
JA: The Expert's answer will cost $10 to $100, depending on the issue type and time to respond. You'll see the exact amount on the next page and can decide then. It's way less expensive and more convenient than any face-to-face visit.
Customer: Ok how much is it ?
JA: Have you talked to a tax professional about this?
Customer: no
JA: Anything else you want the Accountant to know before I connect you?
Customer: no don't think so

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

Please advise

- is this a let property of your main residence

- the purchase price

- has it always been a let property

- any capital improvements during period of ownership
Many thanks

Customer: replied 16 days ago.
its a let property now, we lived there for 5 years originally. Never actually declared it thou ? Purchase price £120000. We worked on it when we moved in but not down anything there for a few years

Thank you for your reply..

Please clarify..

- you lived in the property for 5 years. How long has it been let - date first let!

- date of purchase

- are you saying you never declared rent received?

Many thanks.

Customer: replied 16 days ago.
we bought it in 2000 and moved out in 2005 then let. no we never actually declared it as it never come up

Thank you for your reply.

My advice is that you should make a voluntary declaration to HMRC and bring your tax affairs correct. As soon as you sell the property HMRC would be aware of the sale as it has access to all transactions recorded at the Land Registry

The property is owned for say 20 years and 5 of them as main residence.

Your gain exempt from CGT is (69/240x200,000) £57,500.

Gain not covered (200,000-57,500) £142,500

say jointly owned - gains allowance (12,300x2) £24,600

Gain subject to CGT (142,500-24,600) £117,900

This would attract CGT at 18%, 28% or a combination of both depending on your total income including the gain.

Worst scenario CGT at 28% £33,112

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

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 15 days ago.
ok thanks that great !

I thank you for accepting my answer.

I'm glad I could help you resolve this today. Please follow up here if you have any other questions.

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Many thanks.