Please could someone do a CGT calculation for me

[wedgehog]

I am thinking of selling a flat we own now that we are retired and wondered how much the Tax man would take off us,
My wife rented the flat for 18 years before I met her and then when we married we bought it on the right to buy scheme in Sept ish 2000 for £7500.
We lived there for over a year and then due to my work we had to move down south and we bought another house down there. We stayed there for many years.
We got an agent and let the flat, and during the whole time to present day the flat has been with several Agents, sometimes with a tenant in, sometimes empty, most recent tenant lived there for over a year and moved out a couple of months ago.
The flat is on the market with the current agent for £75000, My wife and I are both retired, both have standard pensions and my wife has a pension from a previous employer of £187 per month on top of her state pension. I have no other pensions.
I know there have been changes to CGT since we bought the flat, although I don't know what they are, and wondered if someone would be so kind as to give us a rough idea of what CGT we may pay.

[wedgehog]

Oh I meant to make clear, yes we are joint owners. Thanks

[pawncob]

"we stayed there for many years" gives the impression that you moved back to the flat or bought another house. Clarify please.

Assuming you didn't reoccupy, it looks like the gain will be c£19300 each before allowances.

[someone]

Assume 1 year residence, 17 years let (it's not clear if the gaps were voids between lets or whether the house wasn't marketed. Probably doesn't matter provided there was at least 2.5 years of lets)

14% is ppr (2.5/18)

gain is 75000-7500 = 67500

9500 to ppr
9500 to rlr

48500 taxable.

24250 each

less CGT allowance is 13k each taxed

tax at 18% (2300) or 28% (3600) (per person)

Very rough and ready but I think thats' the gist of it.

[wedgehog]

@ Pawncob, Thank you for your help. As stated in my first post
"We got an agent and let the flat, and during the whole time to present day the flat has been with several Agents, sometimes with a tenant in, sometimes empty,"

During the "Empty" the flat was still with whichever agent it was at the time and available for letting, Except for a period of six months when the Council workers managed to break a pipe in the flat above ours while fitting a new Kitchen and we had water pouring through the ceiling for hours. Big Insurance job and the flat was unavailable for let during the repairs and dry out. Agents changed several times during the 16 years for various reasons but mostly incompetence. Has been with one very good agent for the last six years.
No, we never moved back in and as stated in the first post we bought a house down south. Decided to keep the flat as a retirement fund.

@ Someone (Very good Yes total periods of the flat being occupied by tenants is well over 2.5 years, The most recent and last tenant was in for three yaears. Thank you for your kind help.

Wedgie

[wedgehog]

OH! I forgot to say, Shouldn't we get any unused personal tax allowance for the year each, deducted from it as well?

[someone]

OH! I forgot to say, Shouldn't we get any unused personal tax allowance for the year each, deducted from it as well?

No. You get a CGT allowance instead.

But if you haven't used up your personal allowance then you'll be taxed at 18% on this gain rather than 28% (which applies if you've used up the basic rate band)

[wedgehog]

Oh thank you, I looked into this about 15 years ago and then there was taper relief and letting relief and the 36 month rule? seems a lot has changed. So is the CGT relief a fixed rate? and is rlr the letting rlief?

[someone]

The CGT allowance is an amount per year. I don't know the exact number for this tax year but you can google it. (but you cannot use previous years unused amounts)

The 36 month rule is now an 18 month rule (hence 1 becoming 2.5 for ppr)

No taper relief - the government wants to be able to tax inflation (which I suppose is 'fair,' interest on cash doesn't get an inflation relief either)

rlr is residential lettings relief

[wedgehog]

Excellent, thank you Someone. I was just looking at your calculations the 9500 for letting relief and the 9500 for the PPR deducted from the profit, shouldn't that be deducted twice as we are joint owners?