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Help with CGT calculation


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Hi, I would very much appreciate some help please. I am selling my only rented property and would appreciate some guidance on how much CGT I will be liable for. These are the details:

Purchased for £23K 04/1994

Resided there myself until rented in 09/1998

Selling 11/2007 estimated £90K

My income this year 07/08 estimated at £30K gross

Rental profit 07/08 estimated at £2K

Thank you,


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I am no tax advisor but I have sold property and calculated my CGT

If you sell before April you can look at it like this

Total gain 90-23 = £67k

Months of ownership = 163

Months of residence = 53

+ additional 36 months =89

Gain per month 67000/163 = £411

Exempt gain 89x£411=£36582

Liability 67000- 36582 = £30418

As you have let the property you then qualify for lettings relief of up to £40,000 in addition to your £10k exemption

Therefore I reckon you will have no CGT to pay

After April however you will may have to pay 18% of the gain but to be honest I don’t know.

Plym will give better more concise advice than me I can only give a rough guide.

Hope this is useful


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Having looked at the figures, I agree that based on the information you have provided you will not have a CGT liability on your sale - but that is whether it is before or after April 2008 - this is because based on the figures you have provided, PPR and Lettings Relief both cover any CGT liability, without the need to take into account Indexation or Taper, and therefore the Pre-Budget Report will have no effect on the figures in question whilst these reliefs are still available (based on the figures you have provided)


Sherena Glanton CTA

(Plym 77)

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