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• FIRST POST
• POPPYOSCAR
• 14th Sep 17, 7:40 AM
• 10,936Posts
• 22,910Thanks
POPPYOSCAR
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
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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