Hello - this is the first time we have used Taxation Web and would be obliged if someone could possibly help clarify our tax position. We sold our business last year (freehold public house) for circa £400,000. We owned the pub for five years and lived in the upstairs accommodation which was our main residence throughout. We did not own any other property during the period. We were advised to obtain a separate valuation for the upstairs private accommodation in order to claim private residence relief on the sale proceeds. We therefore had a valuation carried out by an estate agent who valued the upstairs living accommodation at circa £200,000 and therefore representing 50% of the total sale proceeds for the whole pub. We sent a copy of the private quarters valuation to our accountant. My question is:
(1) Our accountant originally sent through our tax returns and had made no allowance for the private residence and as such CGT was charged on the whole amount (although he had claimed taper relief) We queried this and he then deducted 20% of the sale proceeds as relating to our private residence and sent through amended tax returns. We then queried the 20% deduction in respect of the private residence given that the estate agents valuation of the private living quarters was £200,000. Our accountant said that 20% private element deductions had been used throughout in relation to certain expenses (electric, water rates and heating oil )and therefore could only treat 20% of the sale proceeds as being for the private residence. Is this assumption valid as ideally we would like to claim at least a third of the sale proceeds as being in relation to our private residence area above the pub ?
Many thanks for any comments - apologies for such a long winded question ! !
- Home
-
Tax News
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice and Methods
- Professionals in Practice & Industry
- General
- TaxationWeb
-
Tax Articles
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings and Investments, Pensions and Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice & Methods
- Professionals in Practice & Industry
- General
- Tax Tips
-
Tax Forum
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations and Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practices & Methods
- Professionals in Practice & Industry
- General
- Tax Jobs
- Get in Touch