CGT advice please.h

[Landlubber]

Hi. Selling a BTL and faced with the inevitable i was wondering just how easy is it to use HMH"s website to deal with it, any curveball i need to know about, what documents do I need ready to hand?

Thanks in advance

[Ham_and_Jam]

Landlubber said:

Hi. Selling a BTL and faced with the inevitable i was wondering just how easy is it to use HMH"s website to deal with it, any curveball i need to know about, what documents do I need ready to hand?

Thanks in advance

Very easy, did it last month.

You need original purchase info. Purchase price and associated costs (estate agent & conveyancing). Same for the sale. You can deduct these from the CGT liability.

Also you can deduct any costs of improvements to the property, but these must not have already been used for any taxable deductions on your annual returns.

You get £3k per year personal CGT allowance. If it s jointly owned you can use 2 x £3k. Each partner claims separately and puts 50% of the value of the property and 50% of all the expenses etc.

You need to set up an account on the HMRC website (easy if you ve got a government gateway registration) -

https://www.gov.uk/report-and-pay-your-capital-gai...

I found it really simple, took about 30 mins, but was double checking everything.

Ask away if you have any questions, its still fairly fresh in my mind.

Edited by Ham_and_Jam on Monday 24th August 20:34

[Ham_and_Jam]

Forgot you say, you can upload evidence. I didn’t bother as mine was fairly simple and wasn’t for a great deal of money.

[Landlubber]

Ham_and_Jam said:

Landlubber said:

Hi. Selling a BTL and faced with the inevitable i was wondering just how easy is it to use HMH"s website to deal with it, any curveball i need to know about, what documents do I need ready to hand?

Thanks in advance

Very easy, did it last month.

You need original purchase info. Purchase price and associated costs (estate agent & conveyancing). Same for the sale. You can deduct these from the CGT liability.

Also you can deduct any costs of improvements to the property, but these must not have already been used for any taxable deductions on your annual returns.

You get £3k per year personal CGT allowance. If it s jointly owned you can use 2 x £3k. Each partner claims separately and puts 50% of the value of the property and 50% of all the expenses etc.

You need to set up an account on the HMRC website (easy if you ve got a government gateway registration) -

https://www.gov.uk/report-and-pay-your-capital-gai...

I found it really simple, took about 30 mins, but was double checking everything.

Ask away if you have any questions, its still fairly fresh in my mind.

Edited by Ham_and_Jam on Monday 24th August 20:34

Thanks, I will. Ta.

[Landlubber]

Ham_and_Jam said:

Landlubber said:

Hi. Selling a BTL and faced with the inevitable i was wondering just how easy is it to use HMH"s website to deal with it, any curveball i need to know about, what documents do I need ready to hand?

Thanks in advance

Very easy, did it last month.

You need original purchase info. Purchase price and associated costs (estate agent & conveyancing). Same for the sale. You can deduct these from the CGT liability.

Also you can deduct any costs of improvements to the property, but these must not have already been used for any taxable deductions on your annual returns.

You get £3k per year personal CGT allowance. If it s jointly owned you can use 2 x £3k. Each partner claims separately and puts 50% of the value of the property and 50% of all the expenses etc.

You need to set up an account on the HMRC website (easy if you ve got a government gateway registration) -

https://www.gov.uk/report-and-pay-your-capital-gai...

I found it really simple, took about 30 mins, but was double checking everything.

Ask away if you have any questions, its still fairly fresh in my mind.

Edited by Ham_and_Jam on Monday 24th August 20:34

So, it's £3k per person per year? Since we bought the house?

[Landlubber]

Ham_and_Jam said:

Landlubber said:

Hi. Selling a BTL and faced with the inevitable i was wondering just how easy is it to use HMH"s website to deal with it, any curveball i need to know about, what documents do I need ready to hand?

Thanks in advance

Very easy, did it last month.

You need original purchase info. Purchase price and associated costs (estate agent & conveyancing). Same for the sale. You can deduct these from the CGT liability.

Also you can deduct any costs of improvements to the property, but these must not have already been used for any taxable deductions on your annual returns.

You get £3k per year personal CGT allowance. If it s jointly owned you can use 2 x £3k. Each partner claims separately and puts 50% of the value of the property and 50% of all the expenses etc.

You need to set up an account on the HMRC website (easy if you ve got a government gateway registration) -

https://www.gov.uk/report-and-pay-your-capital-gai...

I found it really simple, took about 30 mins, but was double checking everything.

Ask away if you have any questions, its still fairly fresh in my mind.

Edited by Ham_and_Jam on Monday 24th August 20:34

So, it's £3k per person per year? Since we bought the house?

[silentbrown]

Landlubber said:

So, it's £3k per person per year? Since we bought the house?

No.

It's at the point you 'realise' the gain (i.e when you sell). If you have two BTLs you can sell one on 4th April and use your £3K allowance to reduce tax, then sell the second on 6th April and use the following years allowance.

It makes no difference how long you've held the asset - which is one thing that I really think needs changing in the CGT regime.

[Landlubber]

Got it, thanks, I thought that was the case.

[Ham_and_Jam]

Landlubber said:

Ham_and_Jam said:

Landlubber said:

Hi. Selling a BTL and faced with the inevitable i was wondering just how easy is it to use HMH"s website to deal with it, any curveball i need to know about, what documents do I need ready to hand?

Thanks in advance

Very easy, did it last month.

You need original purchase info. Purchase price and associated costs (estate agent & conveyancing). Same for the sale. You can deduct these from the CGT liability.

Also you can deduct any costs of improvements to the property, but these must not have already been used for any taxable deductions on your annual returns.

You get £3k per year personal CGT allowance. If it s jointly owned you can use 2 x £3k. Each partner claims separately and puts 50% of the value of the property and 50% of all the expenses etc.

You need to set up an account on the HMRC website (easy if you ve got a government gateway registration) -

https://www.gov.uk/report-and-pay-your-capital-gai...

I found it really simple, took about 30 mins, but was double checking everything.

Ask away if you have any questions, its still fairly fresh in my mind.

Edited by Ham_and_Jam on Monday 24th August 20:34

So, it's £3k per person per year? Since we bought the house?

If only!

No you get a personal allowance of £3k / year, its not cumulative and resets each tax year if unused.

As I said, if the property is owned by more than one person you can use each personal allowance against their share of the CG liability. For example:

£100,000 purchase
£200,000 sale
£100,000 Capital gain

£5,000 purchase costs
£5,000 sale costs
£10,000 improvements

Net £80,000 CG liability

After £3k allowance(s)=
One owner = £77,000 CG liability
Two owners = £37,000 each

You then pay the CG tax based on your income tax rate:

Standard rate = 18%
Higher rate = 24%

[Landlubber]

Yeah, as i thought, unfortunately all the improvements have been through the books already ans as we didn't use an estate agent to buy thetes not a whole lot we can claim back. Darn it.