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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 16946
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I have a commerical property tht I am selling and is making

Customer Question

hi
JA: Hi. How can I help?
Customer: I have a commerical property tht I am selling and is making gain 350k
JA: Have you talked to a tax professional about this?
Customer: and at the same time , i also have have Buy to let property at 290k that I am selling , which is making a loss of 40k
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: yes , The commericai property was owned by 3 parties and ran business at back in the 90 s . It is on a lease to the leaseholder.
Submitted: 15 days ago.
Category: Tax
Customer: replied 15 days ago.
I would to ask if I am selling them at the same financial year , due the loss on the buy to let property does ithelp to reduce the capital gain ?
Expert:  Sam replied 15 days ago.

Hi

Thanks for your question - I am Sam and I am one o the UK tax experts here on Just Answer

Yes the loss of your BLT can be used to offset against your share of the commercial sale gain as long as its in your actual name (and the other two owners)  and not  a limited company - can you clarify this is the case

Thanks

Sam

Customer: replied 15 days ago.
the BTL is solely under my name and commercial is share equally with my husband and my sis in law.
May I ask when do pay the CGT ? is it different set of rules for commercial and residential ?
Expert:  Sam replied 15 days ago.

Hi

You would pay residential capital gains within 60 days of the sale (as you have to report it within that time frame) but as its a loss no tax to pay then you declare both on the year end 2023 self assessment and ask for the loss to be offset against the commercial gain which is payable no later than 31/01/2024 if you file online or 31/10/2022 if filing a paper return

Thanks

Sam

Customer: replied 15 days ago.
Thanks for prompt reply and its very helpful and clear with you answer. I am retired with some commercial properties as part of annual income and gov pension , which is around 40k to 45 k annually. I guess that I am in the higher tier for CGT tax band, which is 28%.
If my annual income is 42k in financial year 22/23 and set to complete both commercial an BLT properties within the same financial year 22/23 , and CGT gain on commercial property is 100 k and BLT make a loss of 40 K ( Can I include all agents fees, penalty charge in mortgage and solicitor's fee in the calculation ?)
Could you highlight me on how to estimate to work out the cost of CGT at this stage ?Thanks!
Expert:  Sam replied 15 days ago.

Hi

Not really as id need all the details of date of purchase and value and any improvements and costs to buy so really needs to be a a telephone call due to the lengthy time it takes to type it all out and the fact its over and above what your original question asked

Let me know if you wish me to send an additional services request (either writing or telephone so indicate which please)  OR you can ask for  a telephone box from the pop up box that should appear but note note incur an additional charge

Thanks

Sam

Customer: replied 15 days ago.
Hi Sam ,I would to like go ahead with a telephone or writing service with additional info/documents of all purchase dates and cost involved . It will takes me a few days to gather all relevant paperwork. Will this be okay ?
Expert:  Sam replied 15 days ago.

Hi

Sure then you have the calculations to show for the call too - just message back to this ongoing thread when you have all the figures and we can then arrange a phone call at  a mutually convenient time but I will swnd you the additional service request now abd then follow it up with  my contact details

Thanks

Sam

Expert:  Sam replied 15 days ago.

Note the charges here are allowable business deduction sof your gain