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Sam, Accountant
Category: Tax
Satisfied Customers: 16541
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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How do we work out capital gains tax? House, No

This answer was rated:

How do we work out capital gains tax?
JA: What are the assets or property for this capital gain?
Customer: House
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: No


Generally its the sale price

Less the purchase price

This forms the initial gain

From this initial gain you deduct the costs to buy and sell so stamp duty legal fees and estate agent fees AND

the costs of any capital improvements

Then you apply and tax reliefs due for time you lived there as only or main residence

Then you deduct £12300 as the annual exemption allowance

Then any remining final  gain  is liable at 18% or 28% or a mix of both

The rate is determined by your annual level of income, so if you annual income sees you in excess of £50070 2020/2021 then  your basic rate band is all used up and the gain will be charged at 28%

If your annual income is less than this then the amount equal to any unused rate band will be charged at 18% and then any remaining gain at 28%



Customer: replied 8 days ago.
Hi Sam, thank you very much, please can you let us know how we work out the tax relief for the time we lived there.We brought the house in 2015 and lived in it up to September 2020, rented it out until September 2021 and it’s been empty since.
Does the empty period class as ours or is it taxable?I hope that makes sense!Thanks


As that means actually doing the calculation for you I can either offer additional Q&A time or a phone call both which costs an additional fee or you can post that a anew question

I can advise the empty time means the same as its rented - you are not living in it but as the last 9 months are exempt anyway this would cover much of that time between Sept 201 and sale

But I need to know value at purchase

Costs to purchase so legal fees etc

The month and year you bought and month and year you moved out

Confirm all rental income declared to HMRC

The costs of any capital improvements with the date what was undertaken and the cost

The value at todays date

The approx. expected date of sale

Approx costs like legal fees and estate agent fees to sell



Customer: replied 8 days ago.
Thank you Sam, we have not sold yet and are just trying to get our heads around CGT and struggling.How much extra would it be to calculate it to to todays date, so we know what we are looking at approximately.Also do you provide a service that fills in the paperwork on our behalf when the time comes to declare it to HMRC and if so how much is it?Thank you


It would cost an extra £44 by telephone and £50 by writing (as the calculation is time consuming and takes a while to type up)

I am afraid with our affiliation with Just Answer we are not permitted to take clients on directly however we are able to guide you through the process of the capital gain return to be made within 30 days of sale via a phone call which is still so much more cost effective than a high street accountant and of course our costs so far here to date are an allowable deduction from your capital gain position



Sam and other Tax Specialists are ready to help you
Customer: replied 8 days ago.
Thank you Sam, I believe I have booked a phone call with you and look forward to speaking with you soon.
With kind regards

Hi sorry I didn’t see this - what time are you free this afternoon and I will ring you?

Customer: replied 7 days ago.
Hi Sam, no worries. Can you please call at 2?
Thanks, Kate

Hi Kate

Of course I can


Customer: replied 7 days ago.
Perfect, thank you, ***** ***** speaking to you then then! Kate
Customer: replied 7 days ago.
Hi Sam, are you still available for the call?


I tired ringing at 2pm and again at 3.30pm and there was no answer but I can try again now if you are free ?


Customer: replied 7 days ago.
I’ve had my phone on all day and haven’t heard from you.
My number is ***** I am available now


Glad we wetre able to connect on the hpone - have a great weekend