CGT - reliefs producing negative figure or do I just put zero?

ManicMum

Hello

I am just finishing off my SA - hooray! I have worked out the fractions and CGT payable. I know my reliefs. The gain is £17815 and £16746 qualifies for partial private residence relief. Remaining £1068 cancelled out by £40000 lettings relief. On my worksheet where it asks for deductions due to reliefs do I put in £56746 or do I just put in the £17815 to wipe out the gain and then explain my calculations in the 'Description of elections' box?

If someone could help me with this, I can put this baby to bed for another year and you will make me a very happy woman!!

:j Thank you in anticipation!!

pjclar02

Hello there

From the facts provided in your post alone, I can say that you will not be entitled to £40,000 lettings relief.

You would, though, just enter the £17,815 in reliefs.

ManicMum

thanks. Is that because the partial relief is lower than the lettings relief? I have been led to believe that I would get the lettings on top but maybe not. My annual CGT exempt amount should cover it anyway.

:beer:

pjclar02

Lettings relief cannot be more than the PPR relief.

ManicMum

Thanks.

I thought I was ready to submit but it is saying that I owe £1150 CGT. I can not understand what I've done wrong. I entered the £16494 in the box 'Deduction in respect of reliefs and elections' which I thought would reduce the gain to zero. Then 3 pages on it asks you to allocate your gain to the 3 categories it lists below. I put the whole of the gain in the top category (total gains before 23 June 2010). Then below that is says total gain still to be allocated £-16494. Why is this figure negative and where is it to be allocated?

What do I put where to ensure my CGT is zero? Starting to panic now. Thought this would be straightforward and turning into a nightmare.

can anyone help?

ManicMum

When allocating the gain, I have now put 0 in the 3 categories and this has reduced my tax bill to zero. Is that right?

crikeys. Need a stiff drink after this.