This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Tax return CGT help needed

Peaky83
Posts:9
Joined:Thu Aug 13, 2015 12:00 pm
Tax return CGT help needed

Postby Peaky83 » Thu Aug 13, 2015 1:07 pm

Hi can anyone help

Doing a tax return and we sold a property and made £9k profi

When completing the working computation we state we bought the property at £117k and sold at £113k therefore making a loss

But during the time of owning a property we paid off some of the mortgage and so when it come to th final calculation on completion we got a profit of £9k

I am unsure how to show this on the tax return???

section 44
Posts:4468
Joined:Thu Oct 30, 2008 12:47 pm

Re: Tax return CGT help needed

Postby section 44 » Thu Aug 13, 2015 1:25 pm

But during the time of owning a property we paid off some of the mortgage and so when it come to th final calculation on completion we got a profit of £9k
This doesn't make sense. The mortgage does not effect whether or not the property was sold for a profit or loss.

Peaky83
Posts:9
Joined:Thu Aug 13, 2015 12:00 pm

Re: Tax return CGT help needed

Postby Peaky83 » Thu Aug 13, 2015 1:49 pm

In the time of owning the flat the loan was £117k, once we sold the mortgage was £104k and we sold for £113k

Therefore when looking at purchase v sale we made a loss but in fact made a gain as once the cash was received of £113k we paid the loan off and had a profit!
How do I fill this in on the CGT?

Peter D
Posts:10668
Joined:Wed Aug 06, 2008 3:37 pm

Re: Tax return CGT help needed

Postby Peter D » Thu Aug 13, 2015 2:06 pm

Forget the mortgage it does not effect the value you purchased the property the value you sell it for. Did you live in the property as your home or was this an investment/refurb property. Regards Peter

Peaky83
Posts:9
Joined:Thu Aug 13, 2015 12:00 pm

Re: Tax return CGT help needed

Postby Peaky83 » Thu Aug 13, 2015 2:14 pm

Bought the property in 2005 and lived in it until 2009

Then rented out till 2014 November! Then sold

A therefore we show a loss on the sale, correct?

Peter D
Posts:10668
Joined:Wed Aug 06, 2008 3:37 pm

Re: Tax return CGT help needed

Postby Peter D » Thu Aug 13, 2015 3:47 pm

Tell us the actual price you paid for the property and the cost of acquisiton/legal fees. And tell us the actual price you sold it for the the agents and legal fees. Alos supply the dates of the events, at least the MM/YYYY just saying 2005 is not good enough. You say 'We' Sold it, were you both owners. ?Regards Peter

Peaky83
Posts:9
Joined:Thu Aug 13, 2015 12:00 pm

Re: Tax return CGT help needed

Postby Peaky83 » Thu Aug 13, 2015 4:12 pm

My partner purchased it in Nov 2006 and sold in Nov 2014

Price paid was £117k price sold was £113,500

As for legal fees these are unknown exactly, could estimate but be a guess.

My partner does not work if that helps

Peter D
Posts:10668
Joined:Wed Aug 06, 2008 3:37 pm

Re: Tax return CGT help needed

Postby Peter D » Thu Aug 13, 2015 4:47 pm

No all the dates. When di you move out. When was the first tenant, when did they leave. I suspect there is no CGT liability but your dates are all over the place. Regards Peter

Peaky83
Posts:9
Joined:Thu Aug 13, 2015 12:00 pm

Re: Tax return CGT help needed

Postby Peaky83 » Thu Aug 13, 2015 5:06 pm

I disagree Peter I don't think my dates are that bad!

Bought property in November 2006 lived in it and got first tennant in during August 20014 then started rented.

There is nothing more to add than this. The days would not really add anything to this situation.

As for when remnants left and started, surely my previous returns would of taken account of this. We had many in between these dates

Peter D
Posts:10668
Joined:Wed Aug 06, 2008 3:37 pm

Re: Tax return CGT help needed

Postby Peter D » Thu Aug 13, 2015 5:49 pm

So you only rented it out for 3 of 4 months. Very odd. Regards Peter


Return to “Capital Gains Tax, CGT”