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I wonder if you can give me a
cost of CGT. I have been agonising over the calculations and would appreciate
some help, there is so much conflicting and confusing information about.
My daughter is self-employed.
She bought a house in London in 2004 where she lived until 2011. She then married,
and rented out (off and on) the property until 2019.
Her marriage was a disaster
and she moved out of the marital home into rented accommodation and sold her
London house in 2019. The divorce is ongoing.
I calculate she owned the
property for 183 months and rented it out for 97. I also understand that she
gets the final 18 months as a resident. There is also PRR and PLR. I have also read
about failed marriages being taken into account for CGT.
The cost for purchase,
extension and refurbishment (not all receipted as she never bought it to rent
out) and sale costs I calculate as £496,563.
She sold it for £850,000
During year 2019-20 she
Any help will be appreciated.
LR 353,437 x 79/183 = 152,576
Shouldn't that be 40,000?
Shouldn't that be 40,000?
That's brilliant thanks,what about the CGT allowance though, should that be included?
Oldbikebloke, thanks so much. Perhaps you are stuck at home, like me, with nothing to do?I hate to take over this whole thread, but your answers raised another couple of points.1. After the last tenant left, the house was empty for 3 months whilst on the market, so will that reduce the 18 moth period?2. Capital costs, included - Purchase cost, stamp duty, legal fees, associated purchase costs (? not sure exactly), roof extension planning & building costs, redecoration, new sanitary ware, 3 replacement ceilings, extension bespoke furniture, fencing, boiler replacement, white goods, wooden floors, sale agents feed, legal fees. My daughter is adamant that she is reasonable and does not want to cheat the taxman, so do these items sound reasonable? It is true that most of them were for her own benefit as it was never intended to be rented out.One final point. I agree that post 2 is excellent, however, it was written Dec 2017. Every year the tax system is tweaked with subtle changes which can easily be overlooked with possible consequences. I was trying to be careful.Again, thanks for your support!
Well thanks for all the good advice which I am now trying to put into practice using the IR Self Assessment facility along with the 2019-20 notes. I have found it all somewhat confusing.In the table Claim, election or notice it provides a series of codes.code - PRR - PRR where LR does NOT applycode LET - PRR where LR appliesI expected codes PRR and LR so that I could claim both allowances, so must I add them both together and enter the result under LET?It simply could not be made more complicated even if you tried!
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