| Archive for Downsizer For an ethical approach to consumption |
| Chez |
Capital gains tax and taper relief - calculation help?!I can't find an online calculator to work this out for me and we need to know whether the offer we've had on my old house is worth accepting. Does anyone have the quantum maths knowledge needed to give me a hand working it out?I should probably ring the accountant; but he scares me. |
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| sean |
I thought you had a new benign accountant now. | ||
| dougal |
Gotta go for lunch now.
1st question though - have you ever lived in it, if so how long, how long owned, etc PM me any/all details and I'll give you my estimate this afternoon. |
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| Chez |
Sean - yes, we do. But we haven't paid him anything yet and I don't feel I know him well enough yet. Technically we are still with Sarcastic Accountant until the end of the month.
Dougal, thank you. I will PM you now. |
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| Treacodactyl |
I'm not sure if you know Chez but the capital gains tax rules are changing from next April. Taper relief is being scrapped and gains will be taxed at 18%. | ||
| Chez |
Bugger, I meant to reply to Dougal ... deleting this. | ||
| Chez |
I think we'll be better off selling it now, in that case. Ugh. I can't do double entry book-keeping, either  .
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| Treacodactyl |
Well before things get complicated you'll only be taxed on how much the property has risen since you bought it.
If this is your only gains this year then each owner will get a tax free allowance of £9200, so if it's in joint names that's £18400. Then you can deduct some of the costs of buying, selling and improving the property. |
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| dougal |
Because you *did* live there, Main Residence Relief applies, if only in part.
And that part is boosted by the Revenue's kind credit of the last three years of ownership (whether you lived there or not) There is a bit of a complication that I've referred to in the detailed PM I've sent, BUT because you *factually* lived there (and I presume hadn't nominated a different main residence in writing to the Revenue) its quite possible that the taxable gain could be entirely within your annual Capital Gains Tax allowance ie NO tax to pay. 
Reference http://www.hmrc.gov.uk/helpsheets/ir283.pdf Its Main Residence Relief that is the biggie, not Taper... |
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| Chez |
Thanks Dougal and Treacol - I think we're going to accept it. Just sleeping on it to make sure. Although it's not a massively high offer it will be one less thing to worry about and we are subsidising the property slightly at the moment.
The guy has been dithering about all week - started with a very low offer and worked up a few times and I said 'no' to each and forgot all about it. He probably thinks I'm playing hard-ball, Gordon Geko stylie and really I'm just very distracted  .
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