Retrospective valuation working out CGT

Blueeyes43

Blueeyes43 said:

oldbikebloke said:

Blueeyes43 said:
I’d be ever so grateful if you could work out the CGT for us.  I have tried to do it myself but not sure I am on the right track. 

really?
replace 575 with 655
the mechanics of the calculation have not changed 

Hi, I’m getting £64906. I think it’s thrown me because the retrospective valuation is more than the sale price now, whereas the previous calculation was based on a lower retrospective. Sorry maths wasn’t my strong point. 

Also, what’s totally thrown me is that if £76,106 CGT was payable before based on my guesstimate retrospective valuation of £575k, how come it’s not a lot less by my calculations £64,906 even though the retrospective valuation puts the property value in 2014 £80k more at £655k, I’m not sure my sums are right even though I’ve tried to use the mechanics.

Jeremy535897

Total proceeds £635,000 less costs of sale £15,000 = £620,000
Base cost £50,000 plus £327,500 = £377,500
Taxable gain £620,000 - £377,500 - £12,300 = £230,200
£37,500 x 18% + £192,700 x 28% = £60,706. Your figure £64,906 does not take account of £15,000 sale costs.

OBB's original figure was £76,106. Reduction of £15,400 due to change in estimated value £655,000 - £575,000 = £80,000 divided by 2 = £40,000 + £15,000 sale costs = £55,000 x 28% = £15,400

Blueeyes43

Jeremy535897 said:

Total proceeds £635,000 less costs of sale £15,000 = £620,000
Base cost £50,000 plus £327,500 = £377,500
Taxable gain £620,000 - £377,500 - £12,300 = £230,200
£37,500 x 18% + £192,700 x 28% = £60,706. Your figure £64,906 does not take account of £15,000 sale costs.

OBB's original figure was £76,106. Reduction of £15,400 due to change in estimated value £655,000 - £575,000 = £80,000 divided by 2 = £40,000 + £15,000 sale costs = £55,000 x 28% = £15,400

Great, thank you Jeremy.