Capital gains tax and tax credits

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  • alice123
    started a topic Capital gains tax and tax credits

    Capital gains tax and tax credits


  • alice123
    replied
    As a matter of interest what exactly are the solicitors costs that can be deducted on the purchase just need clarification and also had a survey carried out when we purchased it but i dont have the bill for this just the survey -

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  • alice123
    replied
    After numerous talks with the higherarchy in the tax office this has now been clarified to me - ex had no beneficial interest and from a taxation point of view there is no taxation aspect - eg he did not dispose of it as he had no interest to dispose of , he didnt have an interest in the assett/.

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  • AndrewDod
    replied
    Yes from April 2020 you need to inform within 30 days. But even after that you are the seller, not ex-husband who has zero beneficial interest.

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  • alice123
    replied
    no i think thats in respect to commercial

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  • Kape65
    replied
    Has the 30 day period been implemented yet? I thought it was coming in next year.

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  • alice123
    replied
    Thanks Andrew and sorry for the numerous threads its been a bad few days - im just worried that my ex needed to tell the HMRC that the property had been sold as hes not living here and we didnt know about the 30 day period - even though hes not a benefiicary to the monies - im getting some more info from the tech dept at HMRC

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  • AndrewDod
    replied
    You really will be a lot better having just one thread not 20!

    All the Capital Gain is going on your tax return. He will not need to complete a tax return. You don't declare sales (they see those anyway via land registry) in and of themselves.

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  • alice123
    replied
    Yes and all went into my property account and out again with mortgage and costs (made very little really ) for the past 10 years -

    Ex couldnt do it was hoping it might be a loophole but also because he works abroad and lives there and if he wanted to do it that way he should have within 30 days of the sale - which we didnt (just googled this)

    We dont want any comeback from HMRC and they say the way i have done the calculation is correct being the beneficialry (pity as i would have had to pay 700 each (1,400) had we done it seperatly saving me 1,600 !!!)


    so its £3000 to pay ...........................



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  • jpkeates
    replied
    But, hopefully, you also had all of the rental income.

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  • alice123
    replied
    thanks jpeaks your correct - as usual - ive just spoken to HMRC about it so ill have to pay the 3,000
    its a pity as if both myself and the ex had filed seperate CGT we would be paying each about 600 which is a hugh difference which he is willing to do -

    my having looked after the property for many years means we cannot have the saving

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  • jpkeates
    replied
    You're the beneficial owner, so the gain is yours.

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  • alice123
    replied
    i believe this to clarify my situation -

    https://www.gov.uk/hmrc-internal-man...manual/cg70230

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  • alice123
    replied
    https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg11700p

    Capital Gains Tax is charged under TCGA92/S1 (1) on the disposal of assets, but it is important to bear in mind that the legal owner of an asset is not necessarily its beneficial owner and that it is beneficial ownership (not legal ownership) which the tax principally follows. The point is particularly important in relation to partnership assets, see CG27000, family and matrimonial or civil partnership property, see CG65300+, and real property (land) generally, see CG70500+. Detailed instructions are given at CG34300+.

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  • alice123
    replied
    didnt quite manage to finish the last sentence , however found this -

    https://www.gov.uk/hmrc-internal-man...anual/cg11700p

    HMRC
    [ TCGA92/S1 (1)


    Capital Gains Tax is charged under TCGA92/S1 (1) on the disposal of assets, but it is important to bear in mind that the legal owner of an asset is not necessarily its beneficial owner and that it is beneficial ownership (not legal ownership) which the tax principally follows. The point is particularly important in relation to partnership assets, see CG27000, family and matrimonial or civil partnership property, see CG65300+, and real property (land) generally, see CG70500+. Detailed instructions are given at CG34300+.

    Leave a comment:

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