Capital Gain Tax Q - Property

thank you for trying, it along the right lines but not quite there

does your 49 months lived in a) include or b) exclude the final 18 months of your ownership of the property? I will take as read that there is no overlap between the lived in period and these final 18 months? If the answer is b) exclude then you have under counted the PRR period and it should be 49 + 18 = 67 months

was your wife living in the property whilst she was an owner of it, ie it was your marital home at that time? If yes, she too is entitled to letting relief. I assume 50/50 ownership split, if not equal shares please state respective actuals as it is vital to calculate the respective net taxable gain correctly as you will see below

the potential revised calculation is therefore:
gross gain: 158,300 your share: 79,150, wife's share 79,150

PRR: 79,150 x 67/317 = 16,729

LR: lowest figure from:
a) PRR: 16,729
b) gain in let period 79,150 x (317-69)/317 = 62,421
c) max allowed 40,000
******the lowest figure is your PRR figure********

personal allowance: 11,000

net taxable gain : 79,150 - 16,729 - 16,729 - 11,000 = 34,692

therefore assuming your wife was an owner for the full 317 months you EACH have a taxable gain of 34,692

each of you must declare that figure on your respective a tax return (the value is above the threshold where it a return is mandatory) but how much tax each of you pays depends entirely on your respective total incomes, for example:

Now suppose you have a salary of £30,000 and no other income, that means your income subject to income tax is 30,000 - 10,0000 IT personal allowance = 20,000 and the basic rate income tax bracket runs to 31,865 meaning you have 11,865 remaining of "basic rate" threshold

Your CGT payable is therefore
the amount in the "basic rate" 18% bracket is 11,865 x 18% = 2,136
the amount in the "higher" threshold 28% bracket is (34,692 - 11,865) x 28% = 6,392
Total CGT payable by you (based on a salary of 30k) for a net taxable gain of 34,692 is 8,528

now suppose your wife earns a salary of 47,000. That is well above the basic rate income tax threshold of 31865 + 10,000 (IT allowance) so all of her gain is payable at the higher 28% rate so she would pay 9,714 CGT against her 34,692 net taxable gain

so to answer your question how much will you pay, we cannot give figures unless you both post your exact respective incomes chargeable to income tax (including any savings interest , dividends etc etc)


PS technically speaking you could have claimed the windows as a repair cost against the income tax as HMRC changed their mind on windows being a repair not a capital item sometime ago. But as you appear not to have done so leave your claim as it is now