Hi
First post on this forum. I'm trying to make an accurate CGT calculation for the sale of a BTL property, here's the scenario:
This is a second property which was bought jointly on a BTL mortgage, owned for 32 months but has never been let.
I've included some approximate figures to indicate my calculations. I think the calculations are correct but I'm not sure whether, when calculating final profit, you would add the exemption amount back into the final figure, or is this just used in the allowance against calculating the CGT liable?
A Purchase Price 150000.00
B Purchase Costs 3000.00
C Refurbishment 3000.00
S Sale Price 220000.00
D Selling Costs 3000.00
Taxable Gain (S-A-B-C-D) = 61000.00
Annual Exempt Amount (x2) 22000.00
Amount Liable to Tax 39000.00
50% Lower Rate (18%) 3510.00
50% Higher Rate(28%) 5460.00
Total CGT Payable 8970.00
Profit (Amount Liable-Total CGT) = 30030.00
Actual Profit (inc Exemption Amt 22k) = 52030.00 ??
I'm also trying to work out whether it's worth clearing the mortgage and moving in for 6 months before selling, to take advantage of the 18 month rule?
Any advice greatly appreciated.
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