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

CGT letting relief

Herbs16
Posts: 69
Joined: Wed Aug 06, 2008 3:53 pm

CGT letting relief

Postby Herbs16 » Tue Jan 05, 2016 9:50 pm

Hi Forum
Can someone help as to whether I need to pay any CGT?

I disposed of a property in June 14 for £177950, fees etc £2777
Purchased on 5/2/05 for £127000, fees £976

Its owned by myself and wife 50/50 which calculate a gain of £23598

Its been rented the whole time, can I claim the £40k relief to wipe out the gain please??

Many thanks

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

Re: CGT letting relief

Postby Peter D » Tue Jan 05, 2016 11:11 pm

Letting Relief is only available if the property was at one time your PRR. Read HS273 on the HMRC web site. Regards Peter

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

Re: CGT letting relief

Postby Peter D » Tue Jan 05, 2016 11:17 pm

Did you pay SDLT on purchase as that is deductible. I also need to know your individual total gross income including the rental profit.
Regards Peter

Herbs16
Posts: 69
Joined: Wed Aug 06, 2008 3:53 pm

Re: CGT letting relief

Postby Herbs16 » Fri Jan 08, 2016 10:15 am

many thanks Peter

no SDLT paid

Mr income
salary £9186
Dividends gross £9999
no rental profit

Mrs income
salary £14599
no rental profit

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

Re: CGT letting relief

Postby Peter D » Fri Jan 08, 2016 10:55 am

Here you are :
Purchase 127,000 05/02/2005
Disposal 177,950 14/06/2014
Total Gain 47,197
PRR 0 0 112
Capital Gain 47,197
Lett Relief 0 Qual Days 0
Net Gain 47,197
CG Allow 22,200
CGT 2,250 0
CGT 2,250 0

CGT Bill 4,500

Regards Peter


Return to “Capital Gains Tax, CGT”