Capital gains tax personal allowance

billyoung1611

Hope someone can help as being a pensioner I still find it so hard to understand HMRC's website  I bought a property on 2008 for £195000.I lived in the property for 9 years I then rented the property out for 5 years I have now sold the property for £280000. Does anyone know how I work out the personal allowance .Cannot understand HMRC's instructions .Is there an online calculator anywhere to work out how much personal allowance i will have ?
Summary gain of £85000
Owned for 14 years 
Lived there as my main residence  for 9 years
Rented it out  for 5 years 

Slithery

We'll need to know exact dates and any other income to do a proper calculation but it's roughly...

Time owned - 14 x 12 = 168 months

It was your main residence for - 9 x 12 = 108 months. Add 9 months as you get this for free = 117 months

You are liable for tax pro-rata on the amount of time it wasn't your main residence so - 51 / 168 x £85000 = £25804 of taxable gain.

Take away your yearly allowance - £30863 - £12300 = £13504 taxable

Assuming no other income you'll pay 18% on the first £12570 and 28% on the rest making a total of £2600 tax to pay. This will obviously increase depending on what other income you have.

You have 60 days from completion to declare the tax and pay it to HMRC.

p00hsticks

Slithery said:

We'll need to know exact dates and any other income to do a proper calculation but it's roughly...

Time owned - 14 x 6 = 84 months

It was your main residence for - 5x6 = 30 months. Add 9 months as you get this for free = 39 months

I'm not sure if I'm missing something here, but why do you seem to be multiplying the number of years by six to get the number of months ?

And the OP says it was their main residence for 9 years, not 5 ?

So by my calculation;

time owned = 14 years = 168 months

It was their main residence for 9 years = 108 months

Plus the nine months free takes it to 117 months

 So the proportion of gain taxable is (168 - 117) / 168 x £85,000 = £25,803.

Less the CGT allowance of 12300, leaves 13,503 taxable.

OP;

you many be best plugging your precise values (times in exact months, not years, and also including buying and sellings costs) into the official gov.uk CGT calculator here

https://www.gov.uk/tax-sell-property/work-out-your-gain

Slithery

p00hsticks said:

Slithery said:

We'll need to know exact dates and any other income to do a proper calculation but it's roughly...

Time owned - 14 x 6 = 84 months

It was your main residence for - 5x6 = 30 months. Add 9 months as you get this for free = 39 months

I'm not sure if I'm missing something here, but why do you seem to be multiplying the number of years by six to get the number of months ?

And the OP says it was their main residence for 9 years, not 5 ?

You're absolutely correct. Was doing it quickly on my phone whilst at work.

Will edit my post accordingly

Edit - Done. Should be correct now.

canaldumidi

p00hsticks said:

Slithery said:

We'll need to know exact dates and any other income to do a proper calculation but it's roughly...

Time owned - 14 x 6 = 84 months

It was your main residence for - 5x6 = 30 months. Add 9 months as you get this for free = 39 months

I'm not sure if I'm missing something here, but why do you seem to be multiplying the number of years by six to get the number of months ?

And the OP says it was their main residence for 9 years, not 5 ?

So by my calculation;

time owned = 14 years = 168 months

It was their main residence for 9 years = 108 months

Plus the nine months free takes it to 117 months

 So the proportion of gain taxable is (168 - 117) / 168 x £85,000 = £25,803.

Less the CGT allowance of 12300, leaves 13,503 taxable.

OP;

you many be best plugging your precise values (times in exact months, not years, and also including buying and sellings costs) into the official gov.uk CGT calculator here

https://www.gov.uk/tax-sell-property/work-out-your-gain

OP will also need to know / tell us / plug into calculator, his income as that affects the CGT rates.

billyoung1611

Many thanks for all your help folks .Gives me a rough idea how much it will be .Property completion is this Friday so will get in touch with an accountant to do all the calculations etc .