Online SA tax calculation anomaly on CGT on inherited property?

itm2

I'm completing my online self-assessment return, and have hit an apparent anomaly with the site's CGT calculation on an inherited property. I reported the disposal of the property to HMRC last December, and paid the CGT due at that time.

I've entered the details in the "Residential property and carried interest" section of the Self Assessment return. The details are:
- "Disposal proceeds": £19.500 (this was the gross capital gain)
- "Allowable costs": £1005 (these were solicitors' fees, etc)
- "Gains in the year, before losses": £19,500 (I assumed this to be the same as "Disposal Proceeds" in this case?)
- Total gains or losses on UK residential property reported on Capital Gains Tax UK Property Disposal returns: £19,500 (same as above)
-  Tax on UK residential property gains reported on Capital Gains Tax UK Property Disposal returns already charged: £1,115 (this was the CGT that I paid last December.

The HMRC tax calculation does not seem to take into account the allowable costs of £1005 when calculating the CGT due - it shows the following:
- Taxable Capital Gains: £7,200 (£19,500 minus my £12,300 CGT allowance)
- Capital Gains Tax due: £7,200 x 18% = £1,296 - this seems to ignore the allowable costs of £1005, which should have reduced the figure to £1,115 (as paid to HMRC last December).

Can anyone spot what I've done wrong, or alternatively confirm that the HMRC website is at fault?

The Self-Assessment helpline is closed until September, which is not very helpful!

JGB1955

Presumably disposable proceeds are those after costs have been taken out - i.e. £18,495

[Deleted User]

Where did you enter the costs on the return? The HMRC pages portal is very unlikely to be at fault. 

Was the property actually sold for £19500? 

[Deleted User]

Box 4 - Sale Proceeds
Box 5 - Value at time of inheritance plus Allowable Costs
Box 6 - 4 minus 5
Box 9 - Gains already reported
Box 10 - CGT already paid 

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1148477/SA108_2023.pdf

itm2

purdyoaten2 said:

Box 4 - Sale Proceeds
Box 5 - Value at time of inheritance plus Allowable Costs
Box 6 - 4 minus 5
Box 9 - Gains already reported
Box 10 - CGT already paid 

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1148477/SA108_2023.pdf

Thanks for this. Just to clarify: the property was sold for £450,000, and I had inherited a 50% share of it (my sister inherited the other 50%), so I reported sale proceeds of £225,000 on my original CGT declaration last December (we created a Deed of Appropriation to allow my sister and I to use our respective CGT allowances).
The sale price was £39,000 higher than the original probate valuation of £411,000, so the gross capital gain for me was £19,500 (i.e. 50% of £39,000). There were £2,010 of solicitors' fees, etc, so my share of these expenses was £1,005, hence the net capital gain was £18,495, and I paid CGT in December of £1,115 (£18,495 less £12,300 CGT allowance x 18%).

So...is the following correct?
Box 4 - Sale Proceeds: £225,000
Box 5 - Value at time of inheritance plus Allowable Costs: £206,505 (50% of the probate valuation plus £1,005 costs)
Box 6 - 4 minus 5: £18,495
Box 9 - Gains already reported: £18,495
Box 10 - CGT already paid: £1,115

[Deleted User]

itm2 said:

purdyoaten2 said:

Box 4 - Sale Proceeds
Box 5 - Value at time of inheritance plus Allowable Costs
Box 6 - 4 minus 5
Box 9 - Gains already reported
Box 10 - CGT already paid 

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1148477/SA108_2023.pdf

Thanks for this. Just to clarify: the property was sold for £450,000, and I had inherited a 50% share of it (my sister inherited the other 50%), so I reported sale proceeds of £225,000 on my original CGT declaration last December (we created a Deed of Appropriation to allow my sister and I to use our respective CGT allowances).
The sale price was £39,000 higher than the original probate valuation of £411,000, so the gross capital gain for me was £19,500 (i.e. 50% of £39,000). There were £2,010 of solicitors' fees, etc, so my share of these expenses was £1,005, hence the net capital gain was £18,495, and I paid CGT in December of £1,115 (£18,495 less £12,300 CGT allowance x 18%).

So...is the following correct?
Box 4 - Sale Proceeds: £225,000
Box 5 - Value at time of inheritance plus Allowable Costs: £206,505 (50% of the probate valuation plus £1,005 costs)
Box 6 - 4 minus 5: £18,495
Box 9 - Gains already reported: £18,495
Box 10 - CGT already paid: £1,115

That looks fine - presumably you remain a basic rate taxpayer when including the taxable gain of £6195?

I would probably put something in the additional information box such as ‘all entries refer to my half share interest in the property’

itm2

[Deleted User] said:

itm2 said:

purdyoaten2 said:

Box 4 - Sale Proceeds
Box 5 - Value at time of inheritance plus Allowable Costs
Box 6 - 4 minus 5
Box 9 - Gains already reported
Box 10 - CGT already paid 

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1148477/SA108_2023.pdf

Thanks for this. Just to clarify: the property was sold for £450,000, and I had inherited a 50% share of it (my sister inherited the other 50%), so I reported sale proceeds of £225,000 on my original CGT declaration last December (we created a Deed of Appropriation to allow my sister and I to use our respective CGT allowances).
The sale price was £39,000 higher than the original probate valuation of £411,000, so the gross capital gain for me was £19,500 (i.e. 50% of £39,000). There were £2,010 of solicitors' fees, etc, so my share of these expenses was £1,005, hence the net capital gain was £18,495, and I paid CGT in December of £1,115 (£18,495 less £12,300 CGT allowance x 18%).

So...is the following correct?
Box 4 - Sale Proceeds: £225,000
Box 5 - Value at time of inheritance plus Allowable Costs: £206,505 (50% of the probate valuation plus £1,005 costs)
Box 6 - 4 minus 5: £18,495
Box 9 - Gains already reported: £18,495
Box 10 - CGT already paid: £1,115

That looks fine - presumably you remain a basic rate taxpayer when including the taxable gain of £6195?

I would probably put something in the additional information box such as ‘all entries refer to my half share interest in the property’

Many thanks. Good idea - I will indeed add a note to the return to clarify this.