calculating capital gains

snuff2pay

Hi I am really struggling with the complexities of the I.R. rules and they won't tell me my capital gains liability because its not due til next year.
Any advice on rough values would be very much appreciated. i just want to know roughly what the taxman will expect before I blow all the money.

property purchased (joint names me and mr snuff) 1986 for £23000
it was our home until Dec 1999 when rented out (value then c. 46000)
sold 2007 for £115000
I earn about 32000
mr snuff 30000

What sort of bill should we expect?

Thanks in advance for your time and expertese

Snuff2pay

Pennywise

I havn't done the exact calcs, but from the look of things, it having been your principal private residence for so long (assuming you had no other house at that time), your PPR relief and lettings relief, together with indexation allowance, taper relief and annual exemptions, result in there being a nil tax liability, so you've nothing to worry about (except of course working it out properly and putting it all on the CGT supplementary sections of both your self assessment tax returns next year!).

snuff2pay

Hi Pennywise
when we rented it out in 1999 we bought another house to live in. Does this make a difference?
Whilst I don't really have a problem paying tax it would be fantastic to not have to!

fengirl_2

Very rough calculation:Sale price 115,000, less cost 23,000 makes gain of 92,000.Period of occupation is exempt - roughly 13/21th's, or 56,953.Deduct 56,953 from gain of 92,000 gives net gain of 35,047.This is covered by your let property exemption (max 45k), so no tax to pay.The second property purchased is not relevent to this scenario.