Capital Gains Tax

[silliemillie]

My Son and his wife are selling their BTL and wpuld like to know a ball park figure for the CGT.

We've looked on the website and keep going around and around.

They bought for 40k and are selling for 185k, 20k owing on mortgage.

What do they do? Do they just inform the HMRC and they work it out? Or does the selling Solicitor do this? Do they do it on completion or at the end of the tax yeAr?

If anyone could give a few pointers that would be great.

[goodgoalie]

To work out the CGT you have to know how long they've owned it for
https://www.gov.uk/tax-sell-property

[Buenchico]

Start here:
https://www.gov.uk/tax-sell-property

Click on 'Next: Work out your gain'.
(The basic gain is probably simply the difference between what was paid for the property and what it's being sold for but that page explains about any exceptions which might apply. It also explains about what can be knocked off that figure, such as the cost of improvement works).

Then follow the links to work out what needs to be paid.

[silliemillie]

Thanks, so assuming they have to work it out themselves, do they pay it on completion or the end if the tax year? So the Solicitor doesn't deduct it from the sale like they do the mortgage, Estate Agent and suchlike?

[Buenchico]

https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax

[silliemillie]

Thank you, I've been trying to navigate the site but keep going around, but that's helpful thanks.