CGT and DofT conundrum
I have a flat in London I am looking to sell but the CGT is baffling me, any help appreciated:
-Flat bought March 1996 for £75,000 Lived in as primary residence for 4 years (rented a room/flatshare for 3 years).
-Moved out in 2001 and rented it out ever since.
-Looking to sell now for £500,000 (I know, I should be happy!)
taxable gain = £390,000 (sale-purchase price minus Estate agency sales fee £10,000 and Lease extension fees £25,000)
So Private Residents relief is 48+9/288 so 19.8% of £390k = £77,187 which leaves CGT liability of £312,813 (minus CGT allowance £12,300 gives £300,513). I'm higher rate payer so 28% tax is £84,143 due within 30 days of sale!
I did spend approx £50,000 major renovations when I first bought the flat BUT I DONT HAVE RECEIPTS, and the bank cant give me bank records pre 2000.
I have two main questions:
1. Can I claim reasonable renovation costs without receipts, as this would make a big difference
2. If I get a Declaration of Trust to my wife, we both get the CGT allowance, (so £24,600 off £312,813) - but how does that affect all the cost calculations, PRR etc - can she claim the PRR or do I only get the PRR on half the CGT liability? Will she end up paying more tax with no PRR/costs?
I'm going round in circles trying to work out most efficient way for us to go forward.
(also one quick question - do you claim PRR first or take it off after costs?)