cgt and taper relief

trevormax

medders2604 wrote: »

Trevormax, the removal of taper and the flat rate only came into effect from April this year. 2007-2008 tax year still gets taper and indexation with the gain payable at the OP's tax rate.
:-)

ah yes, i must have missed the March 2008 bit. Indeed it would still be available in this situation.

medders2604

Forgot to remind you that you will need to get it all double checked (maybe trevormax could help) like I said in my first post I am still waiting on my J01 personal tax exam results so I did this using the manual as a guide. (it's all good practice and keep your fingers crossed for me that I have passed my exam 8 weeks waiting for results is far too long)

trevormax

medders2604 wrote: »

Forgot to remind you that you will need to get it all double checked (maybe trevormax could help) like I said in my first post I am still waiting on my J01 personal tax exam results so I did this using the manual as a guide. (it's all good practice and keep your fingers crossed for me that I have passed my exam 8 weeks waiting for results is far too long)

Good luck with the exams medders, 8 weeks is a bit much.

Im currently studying for my ATT personal tax exams and have my exams in May 09.

Your calculations look good from what I can see. I've not had much experience with indexation but everything else looks fine.

horseman

Thank you for all your efforts Medders and Trevormax good luck with your exams.My income is £10000 (pension) so if you can work it out final tax I will be extremely grateful.

medders2604

An income of £10,000 puts you into 20% tax band so I make that £2817.92 CGT due, don't forget you can deduct your expenses for selling to the total deductions though so add in all the solicitors fees, estate agent fees etc it will save you even more that way.
Good luck with your exam! I've moved onto studying trusts now I must be mad!

silvercar

As the sale took place in 2007-08 tax year, you will be including it in your tax return for that year. You've missed the boat on submitting a manual return so will have to submit online. Make sure you apply to do this in advance as the paperwork takes a week to come through before you can submit online. The online return claculates the tax for you. You have until the end of January 2009 to pay the tax.

By my reckoning, it will all be taxed at 20% so a touch over £2,800.

You can also include in the calculation the costs of buying and selling, including estate agent fees.

horseman

thanks for everbodies help one further question I made a £2500 deposit towards the purchase does this come off as expenses.

silvercar

No, you got that back when you sold. It's not part of the calculation of the gain.

horseman

Thanks for all your help best of luck for exams
nd compliments of the season


horseman

grumpy-old-woman_2

medders2604 wrote: »

Right here you go:
Acquisition cost: £54,000
Indexation allowance on acquisition cost: £54,000 x 0.596 = £32,184
(add in your sale costs here)
Total Deductions: £86,184

could I ask what the indexation allowance is please?