How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask Sam Your Own Question
Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 16901
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
16196420
Type Your Tax Question Here...
Sam is online now

I have a computation I have question on about Capital Gain

This answer was rated:

I have a computation I have question on about Capital Gain tax on a sale of a property
JA: What are the assets or property for this capital gain?
Customer: It is a commercial property
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: The computation has been done by my accountants. I just wanted to ask some questions about the computation to make sure my accountant has satisfied all my areas of concern.
Customer: replied 12 days ago.
Attached file of Computation
Hi

Thanks for your question, I m Sam and I am one of the UK tax experts here on Just Answer and will respond shortly

Thanks

Sam

Hi

SO how can I assist as i,ve taken a look at the computation

Thanks

Sam

Customer: replied 12 days ago.
Hi Sam, thanks.
So a couple of questions;

Of course

Customer: replied 12 days ago.
1) So the commercial property was sold in May 2022. Does it need be part of my 2021 year end accounts? or 2022?

Possibly neither as it was sold in the 2022/2023 tax year so on the 2023 tax return that goes live after 05/04/2023 and is due into HMRC by 31/01/2024

Customer: replied 12 days ago.
2) My accountant has added the 10% and the 20% rate together to make up the amount due to be paid to HMRC. Is this correct ? OR is it one or the other depending on my income for the year?

Hi

You are allowed 10% charged on the equivalent of what unused basic rate bands you have for the year and based on your annual incomes your account has shown (which are £9500 and £7500 respectively then you basic rate band unused position is then £37700 each he just made a typo error so then

£29452 x 10% = £2945.20 each

Thanks

Sam

Customer: replied 12 days ago.
Ah ok, so its a typo. That makes sense. And if its 20% could you give me the calculation?

Yes of course so if your total income for the year is more than £50270 then there is no unused basic rate band left so £29452 x 20% = £5890.40 each

Thanks

Sam

Customer: replied 12 days ago.
Ah Ok, thanks Sam. One final question, ( ignore me for lack of understanding! ) How did you arrive at the £29,452.00

Its from the computation

My apologies

Ive used the wrong figures

They are 

166,109 gain each after the annual allowances of £12300

Customer: replied 12 days ago.
Okay sure no problem. So your view is that the amount of CGT i pay to HMRC from the sale of the property would be £2945.20 each or £5890.40 each?

So £166109

£37700 at 10% = £3770

Remaining  £128409 x 20% = £25681.80

Total tax due £29451.80 if your annual incomes are less than £12570 a year

If they are more than£50270 a year and all the gain is at 20% then £166109 x 20% = £33221.80

Thanks

Sam

Customer: replied 12 days ago.
Thanks. And finally, Is the total tax of £29451.80 per person ?

Hi

Yes thats right ( if you have unused basic rate band) OR £33221.80 per person if you do not

Thanks

Sam

Sam and other Tax Specialists are ready to help you
Customer: replied 12 days ago.
thanks Sam, appreciate all the work.

Hi

You are welcome and apologies for the initial arithmetical error

Thanks

Sam