Self Assessment, online filing and residential property CGT

[Panamax]

Can anyone shed some light on this one?

Income tax payer in online Self Assessment sold a residential property in the year and reported/paid the estimated CGT due.
Following the end of the tax year it's now time to file online income tax Self Assessment for 2022/23

How is full year CGT reported and £,000 overpaid CGT reclaimed?

Can it all be done in online Self Assessment or is separate paper reporting needed for the CGT?

Any guidance on this will be greatly appreciated!

[MaxFromage]

It's all reported on your self-assessment. When you fill in the CGT section (basically using the info from your previous CGT report), you will then be able to insert the tax paid and the reference for that payment. Then it will calculate the balance outstanding/refund due.

[Eric Mc]

The in-year online filing system pretty much guarantees that you pay an incorrect amount of CGT initially. How incorrect relates to the accuracy of your estimation of your other income at the time of the original submission.

At least the SA tax returns now have the correct boxes to fill in so that you will properly get credit for what you paid earlier.

[Panamax]

Thanks guys! Those tips sound smack on target. Most grateful.

[Pit Pony]

I have questions about capital gains on houses.

Say I paid £175k for a house, plus £9k buying costs (solicitors, surveys, stamp duty etc) then paid £8k on a new roof, then sold it for £202.5k minus £3k mortgage reduction fee, £2k estate agent and £1k solicitors fees.

I reckon I'm breaking even over 4 year of foolish investment.

How much CGT will my wife and I be looking at ?

Reading above are we to assume the solicitor will take it off at source from the equity we originally put in and them when we do our Self assessment after April, it will all come out in the wash?

[Panamax]

You can't deduct "repairs" (i.e. the new roof) for CGT.

I've got significant doubts about the "mortgage reduction fee" as well but am not an expert on this..

[Pit Pony]

Panamax said:

You can't deduct "repairs" (i.e. the new roof) for CGT.

I know. Its painful

[MaxFromage]

Pit Pony said:

I have questions about capital gains on houses.

Say I paid £175k for a house, plus £9k buying costs (solicitors, surveys, stamp duty etc) then paid £8k on a new roof, then sold it for £202.5k minus £3k mortgage reduction fee, £2k estate agent and £1k solicitors fees.

I reckon I'm breaking even over 4 year of foolish investment.

How much CGT will my wife and I be looking at ?

Reading above are we to assume the solicitor will take it off at source from the equity we originally put in and them when we do our Self assessment after April, it will all come out in the wash?

Did you rent this out? If so did you claim the roof cost as repairs?

[Pit Pony]

Did not rent out as such.

Rented a room to a lodger on a couple of occasions, whilst living there midweek and the odd weekend.

[MaxFromage]

If you haven't claimed it as expenditure and the work was done soon after buying, then there's a good argument you can add it to the cost of the property.

Some reading here and related to it:

https://www.gov.uk/hmrc-internal-manuals/property-...

On that basis (and using CGT allowances), there'd be no tax due on the sale.

[OddCat]

Pit Pony said:

I have questions about capital gains on houses.

Say I paid £175k for a house, plus £9k buying costs (solicitors, surveys, stamp duty etc) then paid £8k on a new roof, then sold it for £202.5k minus £3k mortgage reduction fee, £2k estate agent and £1k solicitors fees.

I reckon I'm breaking even over 4 year of foolish investment.

How much CGT will my wife and I be looking at ?

Reading above are we to assume the solicitor will take it off at source from the equity we originally put in and them when we do our Self assessment after April, it will all come out in the wash?

Ignoring the roof and the mortgage reduction fee, you've made a £15k profit which is not much more than your combined CGT allowances for 2023/24. So CGT will only be around £1k (assuming 28% rate) ?

[ziontrain]

Pit Pony said:

I have questions about capital gains on houses.

Say I paid £175k for a house, plus £9k buying costs (solicitors, surveys, stamp duty etc) then paid £8k on a new roof, then sold it for £202.5k minus £3k mortgage reduction fee, £2k estate agent and £1k solicitors fees.

I reckon I'm breaking even over 4 year of foolish investment.

How much CGT will my wife and I be looking at ?

Reading above are we to assume the solicitor will take it off at source from the equity we originally put in and them when we do our Self assessment after April, it will all come out in the wash?

solicitors won't deduct anything at source (if you're lucky they'll tell you about the 60 day reporting requirements) so you'll need to tell hmrc and pay any tax due yourself/get an accountant/tax adviser to do it