CGT calculation ?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    CGT calculation ?

    Quick question if I may.

    I am a higher rat tax payer. Bought a BTL property in 1989 for £50k. Sold it recently for £150k,

    Buying and selling and building costs probably come in at around the £10k mark.

    What will be tha approximate CGT ?

    As far as I can see I do not qualify for any relief (e.g. never lived there)

    thanks for any help

    #2
    I assume you have never lived in the property and any building costs are capital in nature not repairs/revenue the 150-50-10 - your unused CG Allowance £10,600 * 28% so £24,753.
    Regards Peter

    Comment


      #3
      ok thanks for that

      wow .. that much !

      too bad they abolished taper relief ... they talk up dropping 1 penny on petrol prices yet behind the scenes you lose another £10k or so because of a simple budget change !

      Comment


        #4
        Scarcely. Taper relief would have taken your tax rate down to 24%. So cost you only £4k. If you'd only owned it 5 years, you'd have won. Swings and roundabouts.

        Comment


          #5
          i thought taper relief would have reduced the liable amount by 40%

          Comment


            #6
            Originally posted by benpincus View Post
            i thought taper relief would have reduced the liable amount by 40%
            And would therefore have taken the 40% tax rate down to 24% having reduced it by 40%.

            Comment


              #7
              Wouldn't there also have been around a 30% indexation allowance from 1989 to 1998?
              To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

              Comment


                #8
                Taper Relief replaced Indexation, you did not get both of them. I assume you are not married, not that it matters know as you have already sold it but yu could have transferred a large enough share to the spouse to mop up their Capital gain allowance, thus dropping the CGT to circa £16,000. Regards Peter

                Comment


                  #9
                  Originally posted by TaxationPete View Post
                  Taper Relief replaced Indexation, you did not get both of them. Regards Peter
                  From http://www.hmrc.gov.uk/stats/capital_gains/cgt_b.htm

                  The current capital gains tax system generally only taxes gains which have arisen since March 1982, allowing relief for inflation up to April 1998. Taper relief applies from 1998-99 and the proportion of gain chargeable is in accordance with the Table TA.7. Chargeable gains, after reliefs, are taxed at rates equivalent to the individual's income tax rate as if they were an additional amount of taxable income (taxable savings income from 1999-2000). There are separate tax rates for personal representatives and trustees. There are certain exemptions and reliefs, which are listed in the tables T1.5, TB.1 and TB.2 .
                  To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

                  Comment


                    #10
                    I remember all the complaints when the changes were announced and many owner transferred ownership between spouses to catch the indexation. HMRC eventually backed off and allowed indexation to be locked against the gain up to April 1998 if disposed of prior to 6 April 2008. Regards Peter

                    Comment

                    Latest Activity

                    Collapse

                    • Reply to SDLT and first time buyers
                      by DoricPixie
                      How old are these children if they have yet to go to university?...
                      04-07-2022, 22:50 PM
                    • SDLT and first time buyers
                      by mpppen
                      Hello again.

                      Just wondering if someone can advise.

                      If I sell a BTL to my children who do not own their own property, I understand that they'll get the stamp duty relief.... two questions then.

                      If they're buying the £350,000 jointly, does the relief count for...
                      03-07-2022, 21:52 PM
                    • Reply to SDLT and first time buyers
                      by jpkeates
                      If the buyers are going to rent the property while they go to university, it may meet the criteria for Stamp Duty Relief but it may not.
                      It would be unusual for siblings leaving university to be able to commit to cohabit in a particular place when they graduate.

                      There's obviously...
                      04-07-2022, 15:14 PM
                    • Reply to SDLT and first time buyers
                      by AndrewDod
                      Apart from anything else, if you are selling the property to the kids, you are getting cash and they have a 100% mortgage - and then they are not actually paying a mortgage on 100% of 350K you will be paying it -- it is not a classic GROB, but risks falling foul of GROB rules - so when you die, even...
                      04-07-2022, 14:45 PM
                    • Reply to SDLT and first time buyers
                      by mpppen
                      Thanks.

                      Yes, the lender is happy to lend them 100% the purchase price so not gifting on our side. In essence, it's just removing it from our name into theirs as he is also our lender.

                      It's unusual I appreciate but it's a private commercial lender - if that makes sense. His...
                      04-07-2022, 13:55 PM
                    • Reply to SDLT and first time buyers
                      by AndrewDod
                      A few other comments:

                      Depending where you are HMRC is not going to believe "no increase in value over past two years". An estate agent assessment may not be worth much at all. If challenged and HMRC do their own assessment you may be paying tax on a 20% uplift of 350K = quite...
                      04-07-2022, 13:45 PM
                    • Reply to SDLT and first time buyers
                      by mpppen
                      Thanks both.

                      The intent is for them to live there but they may want to rent it out while they go off to university. That's where I'm struggling as to whether the Stamp Duty relief applies or not.

                      CGT wouldn't apply as the property hasn't increased in value significantly since...
                      04-07-2022, 13:11 PM
                    • Reply to SDLT and first time buyers
                      by AndrewDod
                      Capital gains tax?
                      Who assessed market value?
                      Are they actually paying for this?
                      04-07-2022, 08:35 AM
                    • Reply to Are letting agent fees(2 year lease,change of tenant) considered allowable expenses
                      by AndrewDod
                      Absolutely northing at all to do with capital expenditure
                      04-07-2022, 08:31 AM
                    • Are letting agent fees(2 year lease,change of tenant) considered allowable expenses
                      by ss112233
                      This question is about allowable expenses for tax deduction.
                      Are letting agent fees for a 24 month lease(with a 16 month break clause) after a change of tenant considered as revenue or capital expenditure?
                      I use a cash basis for accounting. The fees were paid in two lump sums. One at the...
                      03-07-2022, 13:26 PM
                    Working...
                    X