Capital gains???

CLAPTON

GreenNinja wrote: »

Sorry but just giving this a little bump!

If anybody could help would really appreciate it. Also the rental for the period where I wasn't living there, am I right in thinking the first 40k is tax free??

Thanks again for any help.

why not try to work it out yourself based on the inforamtion given above
post up the results and we will check them for you.


The rental income you received whilst letting out must be declared to the HMRC each year and the profit will be taxed as income and not CGT.

silvercar

GreenNinja

Hi, I also need some advice please ref capital gains tax. Property was purchased in Jan 96 for 34,950 and sold in October 09 for 117,250. I lived in the property for 2 and half years. Any idea roughly how much capital gains tax I will need to pay?

You owned it for about 13.5 years, lived in it for 2.5 year approx.

PPR exemption is 2.5+3=5.5.
5.5/13.5 x (117.5-35) = 33.6

letting relief=33.6

capital gain = 82.5 - 33.6- 33.6= 15.3

CGT allowance = 9.6

taxeable gain = 15.3-9.6=5.7

£5,700 x 18% = £1026

Do the costs incurred with buying and selling the property get taken off the amount taxed?

They can be taken off the capital gain.

GreenNinja

Hi Clapton, did try but fractions are not my strong point.

Thanks silvercar for the info, very helpful. I am trying to find an accountant to do all this properly and submit to the revenue.

I sold the property in 2009 to purchase the property I am now living in following divorce from my husband. I got an amount of money from him as a settlement but he then sold our marital home a couple of months after this which I had no money from. Not sure if that alters things at all with the revenue as obviously I have used the money to put into a property to live in as couldn't continue to live in the marital home.

silvercar

Doubt it, marital home would carry PPR exemption. If the other property was held in joint names, then you have half the gain each.

GreenNinja

Ex husband gave me 50K divorce settlement but sold the marital home (which was in joint names) after that was finalised. He made around 160K on the sale of the house so I got a hell of a lot less than half... Would this affect my capital gains amount that I need to pay do you think?

CLAPTON

GreenNinja wrote: »

Ex husband gave me 50K divorce settlement but sold the marital home (which was in joint names) after that was finalised. He made around 160K on the sale of the house so I got a hell of a lot less than half... Would this affect my capital gains amount that I need to pay do you think?

I'm a little confused about which house you are talking about; but if it is the marital house then no capital gains would normally apply as it would be exempt as PPR (as silvercar said above)