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Where Taxpayers and Advisers Meet

CGT: Problems working it out so a rough price would be a great help

diamond2
Posts:6
Joined:Tue Jun 19, 2018 9:52 pm
CGT: Problems working it out so a rough price would be a great help

Postby diamond2 » Thu Apr 28, 2022 8:37 pm

Hi there,

I'm currently selling a BTL and I'm not sure I'm anywhere near to the correct figure 🤔.

I bought my property in 1989 for £93500.

I lived in it for 26 years, then rented it out for the last 7 years.

It's now being sold for £410k.

I pay tax at 20% .

Can anyone help please?

Thanking you in advance.

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: CGT: Problems working it out so a rough price would be a great help

Postby AGoodman » Thu Apr 28, 2022 10:21 pm

Gain = 410000 - 93500 = 316,500 (you can also deduct solicitors fees / SDLT / capital improvements)

PPR = (26 + 0.75)/33 * Gain = £256,500

Non-relieved gain = £60,000

Deduct annual exemption (£12,300) = £47,700

This will be taxed partly at 18% up to the higher rate threshold (£50,270) and then at 28%, taking into account your income (and assuming your income is greater than the personal allowance, which is only available to income). The actual CGT will depend entirely on your income and any other gains.

For example, if you had total income of £30,000, that would leave:

£20,270 @ 18% = £3650 (£50,270 - £30,000)
£27,430 @ 28% = £7680 (£47,700 - £20,270)
Total CGT = £11,330 (ish)

diamond2
Posts:6
Joined:Tue Jun 19, 2018 9:52 pm

Re: CGT: Problems working it out so a rough price would be a great help

Postby diamond2 » Thu Apr 28, 2022 10:43 pm

Thank you so much, this is a real help.

Kind regards


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