Capital Gains Tax calculation?

seven-day-weekend

N
Hi there, does anyone who likes number-crunching fancy working out work out a prospective CGT for me?

We bought a flat in September 1998 for £38500, sold in September 2005 for £85500. Our expenses from selling were about £1600. We spent about £10,000 over the years updating the heating, kitchen and bathroom and about £4k installing replacement windows.

My husband pays tax at standard rate, and at the moment I am a non-taxpayer with an income of less than £1000 pa.

The flat was never our main home and was in my name solely until 2002, then in both names.

Please ignore the fact that we live in Spain for the purposes of this calculation as I don't think it is relevant, as we will only have to pay the tax if we become resident in the UK before April 2009. (Told this by Tax Office).

Thanks

silvercar

gain=45400. I don't think improvements count against CGT though new installations would. eg if there was no kitchen and you put one in that would count but replacing an old kitchen wouldn't. not sure about the windows so not counting them for the moment.

owned for 7 years so reduce gain by 25% taper relief. gain reduced to 34,050.

as you are now married, the transfer of half property to your OH is assumed to be at the price and time you bought it.

there must be some costs from purchase, surveys solicitors ....

Gain of 34050=17025 each.
CGT allowance of £9,200 each reduces gain to 7,825.

for a non-tax payer this is charged at 10% ie £78.25, for a standard rate payer at 20% (unless it moves you to higher rate) ie £1,565.

sale would be included in your tax return for the year in question and payable by 31 Jan in the year following the end of the tax year.

seven-day-weekend

Thanks Silvercar, much appreciated.

There were some costs for buyinfg it, can't remember what they were offhand, but presumably if I can find out then I can grt the gain down even lower?

Thanks once again!

NB: I have been married for 35 years, not just from 2002! We just bought the flat in my sole name to start with.