I want help working out the capital gains tax on my house. Should this be the job of a standard accountant, or a solicitor, or just phoning HMRC to ask? Or does someone else specialise in this?
I used an accountant because the house was shared property bought by my sister and I then transferred to her husband after her death. Cost to do this was shared at £500 each.
yeah I do
IF ( and I suppose it is the annex you had filled full of chinese labourers and boat people) it is your only residence, then the charge is nil.
let us say it is a second house - I think I have done this before you know
You need to register for capital gains by a separate CGT account. IF you use an official calculator then it may - -- open the acct for you and set the 4 week clock to ticking....
So you have opened your CGT acct - and set the four week clock....
The input is price of buying
and then price of selling - no indexation now
Four week clock starts at completion NOT exchange
allowable costs - cost of buying ( around £500)
cost of selling ( say £1000)
AND you are allowed building costs of what you did NOT claim as expenses. Capital allowances. So if you have charged replacement of a chimney on rents then ( reather obviously) you can say it is a capital expense ( durr, double accounting)
Then you pay at 18% or 28% depending on your tax code
and transfer the loo-lah in the fourth week
I found it very straightforward
save £1000 - no no - give ME the thou.... here are my details
Thanks Peter.
Nope, I still need help I’m afraid. It’s the bit where it asks whether you lived there. I lived there for 7 years and then rented it for 13 years. So I’m not sure what that changes?
The other thing is the expenses -
When I moved in it was a shell of a drug den. I completely did it up, new kitchen/ bathroom/ carpets/ decoration/ garden and railings/ doors and windows. Cost me a fortune. This was 20 years ago so
I don’t have receipts but I do have a list of the work done as I’ve kept old diaries.
What sort of proof do they need?
Yes that was my question- who do I need to speak to with my questions. You are liable to pay if you don’t live there, and have rented it out. Okay I’ll try HMRC.
Thanks Peter - I phoned HMRC and spoke to a very helpful lady. I probably would ask my accountant to do the form for me, just to make sure I get it right. I will need to do further checks regarding proving the work I did without receipts, as I don’t want to write it off because it was really expensive!