Capital Gains and Private Letting Relief

andyg_prs

Hi, sorry, I didn't make myself clear. I did specifically use the book keeper (who claimed tax expertise) to produce both company accounts and complete my personal tax returns for me so I would have expected him to have advised me better - particularly for the pension advice.

I can't find my tax return right now but the rental income was declared and I certainly provided all details of rent received, mortgage interest out and maintenance costs for the property.

The book keeper also knew about me selling the house as I had to explain to him why the rent income and mortgage outgoings stopped.

I didn't have access to the accountant, the book keeper just used him to verify the accounts - interestingly the book keeper called his company XYZ Accountancy.

No rents were included in the company accounts....

As for the CGT - I take your point. But as I have said in my previous posts, I have downloaded and linked the 2005/06 tax return and advice document and can't see where I would enter the relevant info?

andyg_prs

The section on the form has this:

Capital gains - read the guidance on page 7 of the Tax Return Guide.
If you have disposed of your only or main residence do you need the Capital Gains Pages? (Yes tick box)
Did you dispose of other chargeable assets worth more than £34,000 in total? (Yes tick box)
Answer 'Yes' if:
– allowable losses are deducted from your chargeable gains,which total more than £8,500 before deduction and before taper relief, or
– no allowable losses are deducted from your chargeable gains and after taper relief your taxable gains total more than £8,500, or
– you want to make a claim or election for the year. (Yes tick box) then (Capital Gains - blank box) - for amount?

I don't see anywhere that allows you to put in the amount of the gain and then to state the amount that is exempt and / or why it is exempt.

RacyRed

andyg_prs wrote: »

Hi, sorry, I didn't make myself clear. I did specifically use the book keeper (who claimed tax expertise) to produce both company accounts and complete my personal tax returns for me so I would have expected him to have advised me better - particularly for the pension advice.

I can't find my tax return right now but the rental income was declared and I certainly provided all details of rent received, mortgage interest out and maintenance costs for the property.

The book keeper also knew about me selling the house as I had to explain to him why the rent income and mortgage outgoings stopped.

I didn't have access to the accountant, the book keeper just used him to verify the accounts - interestingly the book keeper called his company XYZ Accountancy.

No rents were included in the company accounts....

As for the CGT - I take your point. But as I have said in my previous posts, I have downloaded and linked the 2005/06 tax return and advice document and can't see where I would enter the relevant info?

Understood.

Re the tax form, you need the supplementary pages for capital gains
you can find related information HERE and the form pdf is HERE

andyg_prs

Thanks. I have the records for buy and sale price. What I'm not sure of is whether I just leave this as I know no tax is due on it and keep the records to explain if it ever gets raised....which seems unlikely. Or whether to call up HMRC, ask for a copy of my tax return, explain why, and go through the pain of trying to correct this.

I'm sure the official line is to do the latter but not sure if that is the most pragmatic approach?

RacyRed

andyg_prs wrote: »

Thanks. I have the records for buy and sale price. What I'm not sure of is whether I just leave this as I know no tax is due on it and keep the records to explain if it ever gets raised....which seems unlikely. Or whether to call up HMRC, ask for a copy of my tax return, explain why, and go through the pain of trying to correct this.

I'm sure the official line is to do the latter but not sure if that is the most pragmatic approach?

That one is your choice I'm afraid. But if they haven't already been asking questions, then...

Hammyman

andyg_prs wrote: »

Thanks, I think I submitted the returns as I had a small company at the time and had to do self-assessement. I had a rubbish 'book keeper' who had his stuff signed off by an accountant who never advised me on this stuff and didn't advise me on tax reclaim on my pension either.....I think it's all too late now.

The reason you never got the advice is because you didn't use the right service. Think of it as the equivalent of expecting a gynaecologist to do brain surgery. You needed to use an accountant who specialises in tax or a book-keeper who does but knowing one who does this for a business they aren't cheap however their cost is more than offset in the tax you save.

A normal run of the mill book-keeper merely does the entries and files the books and gives no advice whatsoever and that's what you employed.

If the accountant was just having to sign off the book-keepers accounting then the book-keeper wasn't rubbish.

andyg_prs

Although I agree with you in principle I think you are jumping to conclusions. Here is how he currently advertises with the company name removed. He in person claims to have lots of knowledge on how to deal with personal tax returns as well and sought this business from me. He was also far from cheap. But a lesson learnt for the future...

About ABC

A FRIENDLY PRACTICE PROVIDING A COMPREHENSIVE SEVICE TO INDIVIDUALS PARTNERSHIPS AND LIMITED COMPANIES AIMED AT KEEPING THEIR TAX LIABILITIES DOWN AND BEING COMPLIANT WITH CURRENT LEGISLATION


Why You Should Choose ACB

WITH OVER 25 YEARS EXPERIENCE IN THE PROFESSION WE CAN AND DO MAKE A DIFFERENCE.

silvercar

Hammyman wrote: »

The reason you never got the advice is because you didn't use the right service. Think of it as the equivalent of expecting a gynaecologist to do brain surgery. You needed to use an accountant who specialises in tax or a book-keeper who does but knowing one who does this for a business they aren't cheap however their cost is more than offset in the tax you save.

A normal run of the mill book-keeper merely does the entries and files the books and gives no advice whatsoever and that's what you employed.

If the accountant was just having to sign off the book-keepers accounting then the book-keeper wasn't rubbish.

To continue your analogy, the gynaecologist would have suggested a referral to a neurologist rather than said nothing.