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Where Taxpayers and Advisers Meet

CGT Allowance

Squibbs
Posts:27
Joined:Mon Sep 12, 2011 1:56 pm
CGT Allowance

Postby Squibbs » Wed Jan 12, 2022 11:39 am

Hello.
My wife and I have just sold her mothers flat, which since her death we have rented it out.
It's a pretty basic sale. We sold at a price. Let's say £200,000
Our only deductions from that is our original buying cost. Let's say £100,000.
Agents & solicitors fees for the buying and the selling. Lets say £10,000.
Capital gain is £90,000.
That's £45,000 gain each. deduct our allowance £12,300.00 each. = £32,700.00 @ 20% £6,540.00 Tax each??

We are now looking at the CGT tax form to fill in.
Please correct me if I am wrong:-
We have to fill in numbers 3 to 13, which seems to be pretty simple.
04) We put in our selling price.
05) We add our purchase price & include the Agents & Solicitors cost, but do we include the costs for the sale?
The rest about gains & losses in the year, I don't think that applies to us.
But where do we deduct our £12,300.00 allowance??

I look forward to your help.

Squibbs

darthblingbling
Posts:496
Joined:Wed Aug 02, 2017 9:09 pm

Re: CGT Allowance

Postby darthblingbling » Wed Jan 12, 2022 12:40 pm

Pretty sure the return will do this automatically.

Also the cgt rates are 18/28% for residential property, depending on the basic rate band left.

You received the flat on her death or did you buy for £100k prior to death?

Squibbs
Posts:27
Joined:Mon Sep 12, 2011 1:56 pm

Re: CGT Allowance

Postby Squibbs » Thu Jan 13, 2022 1:31 pm

Hello.
We bought the flat for her, and she stayed there rent free until she had to move in with us to care for her.
Regards.
Squibbs

Squibbs
Posts:27
Joined:Mon Sep 12, 2011 1:56 pm

Re: CGT Allowance

Postby Squibbs » Wed Jan 19, 2022 5:26 pm

Thanks Darthblingbling
Another problem with CGT,
Although we gave her the money to buy the flat, and she was named on the land registry, she gave us, or gifted us, her flat in 1997.
On the form do we put the value of the flat at the time of becoming legal owners, and deduct that from our sale price?
Thanks in advance.
S. Squibbs


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