Capital Gains question

da_rule

It's relatively easy, it is just a case of maths (albeit that depends how difficult you find maths). The only question will be whether the £6,000 is deductible, but if you have a lot of your annual exemption to play with then it might be worth ignoring it.

safara

Many thanks all

I am not bad at Maths - but, will revisit this tomorrow in the cold light of day. I do find that the greater the alcohol content, the lesser the numerical ability...

And I take it we will need to fill in a Self Assessment Tax for the financial year we sell the property. I am paid PAYE and dont have to fill in self assessment, but will for the year concerned.

00ec25

safara wrote: »

Many thanks all

I am not bad at Maths - but, will revisit this tomorrow in the cold light of day. I do find that the greater the alcohol content, the lesser the numerical ability...

And I take it we will need to fill in a Self Assessment Tax for the financial year we sell the property. I am paid PAYE and dont have to fill in self assessment, but will for the year concerned.

it would enormously help yourself if your maths improves :rotfl:
as you do not currently have to do a tax return you fall under the following rule, so your maths needs to be correct if you want to take advantage of said rule:
"How to report a sale, disposal or gain
If you don't normally complete a tax return
If you have worked out you have no Capital Gains Tax to pay, you don't need to give HMRC details of your gains or disposals.
http://www.hmrc.gov.uk/cgt/intro/report-gain.htm

if you want us to check your figures then post the real numbers and one of us can advise if your maths is right or wrong

safara

00ec25 wrote: »

it would enormously help yourself if your maths improves :rotfl:
as you do not currently have to do a tax return you fall under the following rule, so your maths needs to be correct if you want to take advantage of said rule:
"How to report a sale, disposal or gain
If you don't normally complete a tax return
If you have worked out you have no Capital Gains Tax to pay, you don't need to give HMRC details of your gains or disposals.
http://www.hmrc.gov.uk/cgt/intro/report-gain.htm

if you want us to check your figures then post the real numbers and one of us can advise if your maths is right or wrong

Excellent So, if I work out my sums correctly - aided by immensely helpful people on here, and it is deduced that there is no tax to pay, then no need to do anything.

First step. Sell the damn house. Then work things out from there will actual figures

Very many thanks all - going to need to bookmark this thread to come back to in a few months time.

safara

Hi All - OK, house sold on the 25th September 2014 for £101,000

So, this is the calculation (Leaving out improvements unless required)...

Bought June 2000 for £43,000
Sold September 2014 for £101,000
Selling fees £2,800

Gain = £55,200

Owned property for 172 months (June 2000 to September 2014)

Time as Principal Private Residence = 142 months + last 18 months

So PPR Relief = (142+18)/172 x 55,200 = £51,348.84

Taxable gain = £55,200 - £51,348.84 = £3,851.16

Personal allowance x 2 = £22,000

So, £22,000 is much greater than £3,851, means no capital gain tax liable.

And according to http://www.hmrc.gov.uk/cgt/intro/report-gain.htm !!! long as I have worked this out, and no gain liable then I dont need to inform HMRC

"If you don't normally complete a tax return

If you have worked out you have no Capital Gains Tax to pay, you don't need to give HMRC details of your gains or disposals."

This all correct?

Cheers