Self Assessment Form Query

Smarty_pants

Sorry to sound so green. I sold my flat last April which I had been renting for over 3 years (lived in previously). I have two questions:

1) I am just completing my SA form for the last time and notice "legal and professional costs". Can I include the amount I paid to estate agents and solicitors when I sold the property?

2) I am aware that I have to pay CGT but I need to seek professional advice as its too much for my brain to cope with. Do I need to submit this before the tax year finishes?

Thanks in advance for any responses.

dori2o

Did you sell the flat after the 6th April?

If so the CG will be shown on a CG suplimentary page to be submitted with the 07/08 tax return. If it was sold before the 5th April, then it should be submitted with this years tax return, i.e. before Jan 31.

The solicitors fees etc would be used in calculation of the the Capital Gain so as I understand cannot be used as an expense against income from land and property.

Cook_County

Speak to a Chartered Tax Adviser if you want help:

http://www.tax.org.uk/

jimmo

Please remember that the disposal date for Capital Gains Tax purposes is the date of exchange of contracts, not the date of completion.
http://www.hmrc.gov.uk/manuals/CG1manual/cg14260.htm
If you exchanged contracts in March and completed in April you sold in 2006/07 and the gain has to be declared in the 2006/07 Return. The Return and the tax due must be with HMRC by 31/1/08.
I just get the feeling you’re not too familiar with this and may not full understand main residence relief.
There seems to be a pretty good chance that you will have no tax to pay but it all depends on the details.
Take a good look at this http://www.hmrc.gov.uk/helpsheets/ir283.pdf
If you publish details of purchase, sale, period you lived there and period it was let then someone will do the computation for you.

Jaxer

If you lived in the flat as your primary residence before it was let out, then the last three years of ownership are deemed to be treated as if it was still your residence (even if you let out it out). From what you posted, if it was sold within 3 years of your moving out, then you may not be liable to CGT at all.

However you should check your circumstances with an accountant just to be sure.