Capital Gains Tax Bill

SonnyH

Hi,

We sold a house at the end of the last tax year (we lived in it but moved overseas and rented it for 20+ years). We completed the online HMRC CGT tax form, and paid the figure quoted to us within the 60 day window. Because the sale was at the end of a tax year, all our income figures were input without estimates.

HMRC have just sent my wife's tax 2025-26 calculation, and she has an extra £2300 CGT to pay. This has left us rather confused - surely their online calculator has already given her the figure we owed? There is no explanation of what the extra is for (note it is more again than the original bill). I have not yet received my tax 2025-26 calculation.

Has anyone got any experience of this and what our next step should be?

Thanks!

sheramber

Have you compared the figures in each calcukation to see what is different?

Grumpy_chap

The post is confusing - can the OP share some actual figures (not just the additional CGT calculated as due) as that might allow contributors to the forum to suggest whether the £2.3k now requested is about the correct value.

Is (was) the property only in the wife's name?

SonnyH

Property was in both names. I'm still waiting for my tax calculation from HMRC.

I guess my point is that we used the HMRC's own non-resident CGT calculator - we plugged in all the figures and information as it requested (without any estimates) and it gave a figure of £1600 for her (using a straight-line apportionment method offered by the calculator). This was duly paid.

We have not reported any new figures - all our other tax figures required were provided (this is solely income from rent as we still live overseas). We are confused as to why the CGT liability has suddenly risen from £1600 to nearly £4000. Is their calculator providing incorrect figures? Or are they disputing the house values without bothering to tell us? Or something else?

sherlock228

https://forums.moneysavingexpert.com/discussion/comment/82182427#Comment_82182427

" Or are they disputing the house values without bothering to tell us? Or something else?"

it could be either, no way anyone on here can say.
get sight of their calculation, they cannot just give you a tax to pay without showing you how it was calculated.

bear in mind, as stated on the website, the calculator should only be used for basic rate taxpayers.

Grumpy_chap

A CGT liability of £1.6k each (I assume 50-50 ownership split) suggests a gain in the value of the property around £20k. (Less if you are HR IT payers.)

A CGT liability of £4k each (50-50 split) suggests a gain in the value of the property around £45k. (Less if you are HR IT payers.)

For a residential property over 20 years, all of those appreciation values seem very low.

poseidon1

The following post a couple of years ago may throw some light on both the gain and possible additional income that affected the tax rates chargeable. However no mention in that post that it was to be a joint rather than sole disposal.

https://forums.moneysavingexpert.com/discussion/6486228/cgt-calculation-simple-question

Would further add, since OP appears to be submitting non resident landlord income tax returns, did the extra tax liabilty follow the lodgement of the NRL returns for 2025/26, so the actual incomes reported therein may also be a factor.

silvercar

I guess my point is that we used the HMRC's own non-resident CGT calculator - we plugged in all the figures and information as it requested (without any estimates) and it gave a figure of £1600 for her (using a straight-line apportionment method offered by the calculator). This was duly paid.

I hope you were also able to include the fact it was previously your main home and therefore you only pay CGT on the proportion of time it wasn’t your main home, plus the last 9 months of ownership are exempt.