Help! Capital gains tax, am I correct? Is it %10?

IdontknowwhereIam

Is my working out correct please?

Sold a small workshop the day before the budget so it is classed as commercial I believe.

Transferred to me in 2019 for £80,000. Sold for £200,000

Gain = £120,000 - £1,824 selling fees = £118,176

Salary for April 2024 to March 2025 will be £44,200 - £12,570 personal allowance = £31,630

£118,176 - £3000 capital gain allowance = £115,176

£37,000 - £31,630 = £5,370 @ 10% = £537

£109,806 @ 20% = £21,961.20

Total tax= 22,498.20

Nomunnofun1

Are you wishing to claim Business Asset Disposal relief where all of the gain would be liable at 10% regardless of other income?

https://www.gov.uk/business-asset-disposal-relief

IdontknowwhereIam

Nomunnofun1 said:

Are you wishing to claim Business Asset Disposal relief where all of the gain would be liable at 10% regardless of other income?

https://www.gov.uk/business-asset-disposal-relief

Thank you for mentioning this. I didn't run a business from it, it used to be rented out but has been empty since around 2018 and then when my dad died in 2019 it got transferred to me and I never rented it out, I was going to convert it into residential and got planning but I decided to sell it instead and never started any work.

Bookworm105

IdontknowwhereIam said:

Nomunnofun1 said:

Are you wishing to claim Business Asset Disposal relief where all of the gain would be liable at 10% regardless of other income?

https://www.gov.uk/business-asset-disposal-relief

Thank you for mentioning this. I didn't run a business from it, it used to be rented out but has been empty since around 2018 and then when my dad died in 2019 it got transferred to me and I never rented it out, I was going to convert it into residential and got planning but I decided to sell it instead and never started any work.

is 80k its 2019 market value given it was transferred from your father on death?
was any IHT paid or is that value yet to be agreed by HMRC?

IdontknowwhereIam

Bookworm105 said:

IdontknowwhereIam said:

Nomunnofun1 said:

Are you wishing to claim Business Asset Disposal relief where all of the gain would be liable at 10% regardless of other income?

https://www.gov.uk/business-asset-disposal-relief

Thank you for mentioning this. I didn't run a business from it, it used to be rented out but has been empty since around 2018 and then when my dad died in 2019 it got transferred to me and I never rented it out, I was going to convert it into residential and got planning but I decided to sell it instead and never started any work.

is 80k its 2019 market value given it was transferred from your father on death?
was any IHT paid or is that value yet to be agreed by HMRC?

All IHT due on my dads death have been paid. The value of 80k was part of a red book valuation by a qualified surveyor, the figures were sent to HMRC to see if they accepted them and they did.

Nomunnofun1

IdontknowwhereIam said:

Bookworm105 said:

IdontknowwhereIam said:

Nomunnofun1 said:

Are you wishing to claim Business Asset Disposal relief where all of the gain would be liable at 10% regardless of other income?

https://www.gov.uk/business-asset-disposal-relief

Thank you for mentioning this. I didn't run a business from it, it used to be rented out but has been empty since around 2018 and then when my dad died in 2019 it got transferred to me and I never rented it out, I was going to convert it into residential and got planning but I decided to sell it instead and never started any work.

is 80k its 2019 market value given it was transferred from your father on death?
was any IHT paid or is that value yet to be agreed by HMRC?

All IHT due on my dads death have been paid. The value of 80k was part of a red book valuation by a qualified surveyor, the figures were sent to HMRC to see if they accepted them and they did.

In that case your calculation is pretty much spot on. 

Jeremy535897

Your figure of £37,000 should be £37,700.

Nomunnofun1

Jeremy535897 said:

Your figure of £37,000 should be £37,700.

Indeed! Well spotted! Reduces bill by £70!