Capital Gains Tax Advice
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 then in September 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
If you are not a site member:
The service offers detailed capital gains tax advice for a discounted fee of £99.95, payable online via our secure servers.
If you are a site member:
You have two options:
Other Capital Gains Tax Advice Resources
We also offers a number of Tax Books which cover capital gains tax, including
- How to Avoid capital gains tax on Property
- Using a property company to save tax
- Capital Gains Tax Calculator
- Avoid capital gains tax on shares and investments
- Avoid capital gains tax when selling your Business
Tax Articles
Look at our Capital Gains Tax Articles
In this guide we look at exactly how an LLP is taxed, before looking at how you can use LLP's to reduce your UK taxes. We cover how LLP's can be used by individuals as well as companies for UK tax planning....keep reading