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Capital Gains Tax - Simple Query

Tubbs123
Posts: 2
Joined: Fri Jan 12, 2018 11:28 am

Capital Gains Tax - Simple Query

Postby Tubbs123 » Fri Jan 12, 2018 11:42 am

I've recently sold a property and in making the CTG return I'm unclear as to if I owe the taxman anything.

Property purchased for £28500 in 1995
Was PPR until until approx 2004 when I started renting out
Sold for £42000 in 2017

Of the £42000 then can I offset the selling agent and legal costs (£1785)? Are there any other items I can offset?

If the above is correct and there are no other costs I can offset then by my calculations;

£42000 sale
£1785 sale costs
£40215 net sale income

less £11100 CGT Allowance

leaving £28715
less £28500 (original purchase price)

Does this mean I owe CGT on £215?

This seems a really simple way of calculating this - I am simplifying too much?

Any guidance/advice gratefully received?

SteLacca
Posts: 297
Joined: Fri Aug 07, 2015 2:17 pm

Re: Capital Gains Tax - Simple Query

Postby SteLacca » Fri Jan 12, 2018 1:10 pm

No. You owe nothing. I've had to round since you only give years (should be calculated at least based on months), but

Code: Select all

Disposal 42,000 Acquisition (28,500) -------- Gross 13,500 PPR (13,500 x9/22) (5,522) lettings relief (5,522) -------- Gain 2,456 Exempt 2,456 -------- Taxable 0

Tubbs123
Posts: 2
Joined: Fri Jan 12, 2018 11:28 am

Re: Capital Gains Tax - Simple Query

Postby Tubbs123 » Fri Jan 12, 2018 1:43 pm

Thanks you very much for the guidance


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