We can provide you with detailed advice on:

• How to calculate capital gains tax ('CGT')
• How to avoid and minimise capital gains tax
• Which capital gains tax reliefs you're entitled to
• Avoiding capital gains tax by becoming non UK resident
• How the principal private residence relief exemption will apply
• Claiming taper relief (business and non business asset rates) to reduce capital gains tax
• How the capital gains tax anti avoidance provisions will apply to your disposal

What will I receive

You'll receive a detailed e-mailed response to your capital gains tax question within three working days.

Sample capital gains tax question

Question:

Please work out my liability for Capital Gains Tax.

I bought a property for £79,000 in June 1990. I lived there between late 1991 and mid-1999. I have not lived there since then.

The property was bought with a partner. I sold to them in Sept 2007 and received £130,000.

Work on the property equates to £5,000.

Please let me know if you require further information.

Answer:

Based on you owning and disposing of your 50% in the property for £130,000, the chargeable gain would be calculated as:

Proceeds 130,000

Cost ( 39,500)

Enhancement costs ( 2,500)

Gain 88,000

Indexation allowance (11,886)

Gain 76,114

You would then be entitled to Principal private residence ('PPR') relief.

This is calculated on the following basis:

Capital gain x period of occupation/period of ownership

In your case the last 36 months of ownership would be deemed to be occupied by you irrespective of whether you actually occupied the property during this period. Therefore PPR relief would be calculated as:

Period of ownership = June 1990 - Sept 2007 (assuming a Sept 07 disposal date) = 17 years 3 months

Period of occupation = Sept 91 - June 99 (assuming this was your occupation) = 7 years 9 months + last 36 months deemed occupation = 10 years 9 months

PPR relief = 10.75/17.25 * 76,114 = 47,433

Remaining gain = 28,681

Taper relief @ 40% = (11,472)

Annual exemption = (9,200)

Chargeable gain is around £8,000.

Assuming you were a higher rate taxpayer, your CGT charge would be approximately £3,200

Note that if you were married, you could have transferred half of your 50% interest to your spouse and potentially avoid CGT in full (due to being able to utilise your spouses annual exemption).

In addition, if the property was let from the period post 1999 you would also be entitled to lettings relief which could eliminate the remaining gain (after PPR relief) in full.

How much does it cost

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