Capital gains help

tintin1984

Hi all,

Hoping there may be some capital gains tax experts out there that can offer some insight

We (Myself, Mum and Dad) purchased a house in 2000 for £78k with the purpose of moving my Nan in, rent free, so she was close to home (literally it was the house next door) but still had some independence.

We sold the house last week for £295k (£217k profit) along with my parents main home. Mum, Dad and Nan are all now living together in a new house. I live with my partner in a completely separate house.

I know that we each have a capital gains tax allowance of £11k, but are there any other aspects we can use to offset against the capital gains tax? I.e. The fact we did not charge rent? That a family member had it? The cost of the mortgage etc? Obviously we will pay what were meant to but are pretty clueless as to where we stand.

We have been told by an accountant that we can't calculate the tax until April when the tax year is over. Is this correct?

I am new to this so please any help will be greatly appreciated.

Thanks in advance

CLAPTON

tintin1984 wrote: »

Hi all,

Hoping there may be some capital gains tax experts out there that can offer some insight

We (Myself, Mum and Dad) purchased a house in 2000 for £78k with the purpose of moving my Nan in, rent free, so she was close to home (literally it was the house next door) but still had some independence.

We sold the house last week for £295k (£217k profit) along with my parents main home. Mum, Dad and Nan are all now living together in a new house. I live with my partner in a completely separate house.

I know that we each have a capital gains tax allowance of £11k, but are there any other aspects we can use to offset against the capital gains tax? I.e. The fact we did not charge rent? That a family member had it? The cost of the mortgage etc? Obviously we will pay what were meant to but are pretty clueless as to where we stand.

We have been told by an accountant that we can't calculate the tax until April when the tax year is over. Is this correct?

I am new to this so please any help will be greatly appreciated.

Thanks in advance

you can offset the buying and selling cost (solicitors, estate agents, surveys etc) and any improvements (but not maintenance).

each of you has to file a tax return for 1/3 of the net profit and each has cgt allowance of 11,100 : you then pay between 18 and 28% depending upon your other income.

Keep_pedalling

You won't be able to calculate the tax until the end of the tax year because how much you pay will be dependant on your other earnings. You may also be able to offset some of your gains for losses both in this tax year and previous ones, so if for instance any of you had sold loss shares at a loss in the last few years you can offset those against this year's gains.

This might be a good time to dispose of any assets you are currently holding that are worth less than you paid for them such as shares in banks that were purchases before the melt down.

Now would also be a good time for you all to register for self assessment ready to do the nessasary 2015/16 tax return?

tintin1984

Thank you all for your advice. I will take this on board. Thanks especially for the comment about applying for self assessment. I wouldn't have thought to get that organized. Much appreciated

patanne

Is it really necessary to sign up for self assessment when this is a one off occurrence and get stuck on it for a few years before they let you stop. Surely a simple letter at the end of the tax year would be sufficient stating ALL the required information.

Keep_pedalling

patanne wrote: »

Is it really necessary to sign up for self assessment when this is a one off occurrence and get stuck on it for a few years before they let you stop. Surely a simple letter at the end of the tax year would be sufficient stating ALL the required information.

Not according to HMRC, it seems SA is required if you have CGT to pay. On the up side using SA on line does all the complex calculation for you.

patanne

If HMRC had their way virtually everyone would file SA. OP please note that if you do go the SA route that you will have to file SA until they let you stop. If you do not file, even though it is blatantly obvious that there is no need, you will be fined. So be prepared for the long haul.