CGT on rental property

Pitlanepiglet

Hi guys

Can anyone help me with a CGT calculation as I've been all through the Inland Revenue site and I'm royally confused :rolleyes:

I bought in October 1989 for £39,950, had expenses (installation of central heating where there was none so "improvements" I reckon? of £6,000 and about £5,000 of selling fees and other relevant fees).

I sold in October 2007 for £100,000.

I've been through the guidance and have worked out that I need to apply Indexation and then Taper relief but I can't for the life of me work out how I apply both of these...

Having procrastinated for too long I'm planning to submit my SA with a figure on it for the CGT and pay that amount, I'll then get the Accountant to sort it out after the end of January as I appreciate that I've left it way too late to expect the Accountant to deal with it now. I'm hoping that this will be OK?

Thanks in advance

Piglet (usually resident on the OS board )

Pitlanepiglet

You're a star sir, thank you very much...:T

I transferred a half share of the ownership to my husband in Feb 2007 just after we married so we should be able to to spread that gain across the two of us and he had virtually no income in that period (mine will be 40%) so we should be fairly clear of CGT I think.

Thanks very much, it is very much appreciated.

Edited to add...I still can't work out how the two sets of allowances get tied together, I got the same gain from Indexation but then couldn't work out what to do with that figure, I'm quite bright but figures make very little sense to me!

ceeforcat

Basically what you do is declare half of all the relevant figures in jimmo's computation on each of your SA returns on the Capital Gains section i.e. each of you have disposed of half of the property. The tapered gain is £18843 or 9421 each. Each of you claim the annual exemption of 9200. Your husband will pay tax £221 @10% - you will pay £221 @40%

Pitlanepiglet

Thanks ceeforcat :T

Pitlanepiglet

Hi Jimmo, they should be fine for the SA, it's just me that is struggling but numbers really aren't my strong point! I've had another look and I think I've sussed it now.

Thanks for you help both of you, you really have saved me!