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  • FIRST POST
    • POPPYOSCAR
    • By POPPYOSCAR 14th Sep 17, 7:40 AM
    • 10,936Posts
    • 22,910Thanks
    POPPYOSCAR
    CGT on 2nd property.
    • #1
    • 14th Sep 17, 7:40 AM
    CGT on 2nd property. 14th Sep 17 at 7:40 AM
    Could anyone tell me if I am working this out correctly please?

    Second property bought 1987 sold 2017 so owned 30 years(360 mths) owned jointly.

    Lived in for 9 years = 111mths

    Rented out 15 years = 180mths

    Bought for £70,000 sold for £600,000( gain £530,000)

    PPR = 111+18 = 129mths 129/360 = 0.358
    35.8% of £530,000 = £189,740

    Letting Relief 180/360 = 0.50
    50.0% of £530,000 = £265,000
    Maximum allowed £40,000 x 2 = £80,000

    PPR £189,740 + LR £80,000= £269,740
    Gain of £530,000 - £269,740 = £260,260
    less CGT allowance x 2 - £ 22.600

    Total chargeable gain = £237,660

    Assuming no other income

    £237,660/2 = £118,830 gain per owner.

    First £33,500 at 18% = £6030
    Balance £85330 at 28% = £23892.40
    Total CGT payable for each owner £29922.40

    Thank you.
    Last edited by POPPYOSCAR; 14-09-2017 at 9:06 AM. Reason: Adjusting Tax band
Page 3
    • 00ec25
    • By 00ec25 31st Oct 17, 12:15 PM
    • 5,762 Posts
    • 5,214 Thanks
    00ec25
    Would HMRC take such an interest on modest expenditure on a large gain?
    Originally posted by POPPYOSCAR
    What are you on about?
    Originally posted by POPPYOSCAR
    your response reads that you think the case I quoted relates to the exact circumstances of that case. Your follow up comment implies that you therefore think HMRC won't (can't?) apply the basic principle because the amount involved is too small

    whilst I suspect you accept that the principle (tax claims must be supported) is clear, you also seem to be asking if there is anything more specific to evidence that, hence go find it yourself if you are looking for ways to avoid tax by submitting unsupported claims
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