CGT Calculation Help

[nutey]

Just filling in my first Self Assessment as I sold my old house in May last year and I just need a sanity check on my Capital Gains calculation

In total I owned the property for 3,683 days, of which the first 2,003 it was my home. It was then rented out for 1,458 days and the balance it was empty.

After taking all the costs off for the original purchase and sale I'm left with £25,619 gain. As the sale was in 2013/14 tax year I believe I get an additional 3 years of "free" PRR for the final period of ownership = 1,095 days

So am I right in thinking my PRR would be:

(2003+1095)/3683 X £25,619 = £21,549.73

So my gain would be 25,619 X 21,549.73 = £4,069.27

So ignoring any letting relief I would be well under the £10,900 allowance - Right?

Would it still be worth applying the letting relief:

(1458-1095)/3683 x £25,619 = £2,525.03

That would leave a total of (4069.27-2525.03) = £1544.24

Or am I completely wrong??

[Eric Mc]

I'll tell you - for a fee

[nutey]

Eric Mc said:

I'll tell you - for a fee

What's the going rate then? I've got 78p and half a bag of peanut m&ms

[Alpinestars]

Sounds right. You'd claim LR if you want to use your AA against any other gains. And in any case, there's no downside so why not claim it?

You might get PPRR for the empty period as well but that depends on facts and when the empty periods were. But either way, it's moot.

Edited by Alpinestars on Saturday 15th November 00:14

[sumo69]

Basic pre lettings relief calc looks fine - unless you have any other chargeable gains that will take you over the annual exempt amount, you can leave it like that.

As it was let, you will need to complete the CGT pages on your TR.

David

[nutey]

Alpinestars said:

Sounds right. You'd claim LR if you want to use your AA against any other gains. And in any case, there's no downside so why not claim it?

You might get PPRR for the empty period as well but that depends on facts and when the empty periods were. But either way, it's moot.

Edited by Alpinestars on Saturday 15th November 00:14

Forgive my ignorance but what does "AA" stand for?

[nutey]

sumo69 said:

Basic pre lettings relief calc looks fine - unless you have any other chargeable gains that will take you over the annual exempt amount, you can leave it like that.

As it was let, you will need to complete the CGT pages on your TR.

David

So you're suggesting no need to go into the letting relief as the allowance covers it before taking that into account?

I'm filling in the return online using the standard calculation sheet. So now I know the numbers are right do I just stick the working in the comments box at the bottom to show how I worked out the reliefs as I can't see any other way to show how I arrived at the numbers?

[Eric Mc]

nutey said:

Forgive my ignorance but what does "AA" stand for?

"Annual Allowance" - it refers to the Annual Capital Gains Tax allowance that everyone has each year for offset against any taxable Capital Gains they might make each year.

The Annual Allowance for 2013/14 was £10,900. For 2014/15 the allowance is £11,000.

[Eric Mc]

nutey said:

So you're suggesting no need to go into the letting relief as the allowance covers it before taking that into account?

I'm filling in the return online using the standard calculation sheet. So now I know the numbers are right do I just stick the working in the comments box at the bottom to show how I worked out the reliefs as I can't see any other way to show how I arrived at the numbers?

HMRC expect a taxpayer to supply details as to how they have arrived at the figures entered on the return. The "white space" on the return is provided to allow this type of detail to be included.