Help calculating partial private residence relief please!

mizzbonita

I’m not sure how to calculate it and if anyone could help that would be much appreciated. 

My gain after capital expenses and legal fees is £105,200. I owned the property for 185 months and occupied it for 157 months (including the 9 months deemed occupation)

What’s the amount I get in PRR please? Any help would be appreciated. 

BonaDea

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

mizzbonita

It doesn’t have a calculator to work out your PRR 

saajan_12

mizzbonita said:

I’m not sure how to calculate it and if anyone could help that would be much appreciated. 

My gain after capital expenses and legal fees is £105,200. I owned the property for 185 months and occupied it for 157 months (including the 9 months deemed occupation)

What’s the amount I get in PRR please? Any help would be appreciated. 

Just based on your numbers, 157 / 185 x 105.2k = 89.3k PRR
That leaves 28 / 185 x 105.2k = 15.9k of your gain, on which you apply whatever you have left of your annual allowance. 

The rest is then taxable at 18 or 28% depending on how space you have within your basic rate tax band. 

BonaDea

£15,900 of gain, but you have a CGT allowance of £3000, so the taxable amount is £12,900.  Tax rates are 18% and 24% (changed from 28% to 24% in the last Budget).  So if you have, for example, £5K left in your basic tax rate band, you'd pay 18% on £5K and 24% on £7.9K, which would be £900 + £1896 = £2796.  

mizzbonita

Thanks both so much, this is really helpful. I pay the higher rate of tax but knowing the PRR relief value is super helpful