Capital Gains Tax

[thorfinn]

I sold a flat last year that I'd bought in 1986. It wasn't my main residence from 1998 to 2004 as I was working abroad. The question of CGT therefore arises. I know I've nothing to pay because a very helpful technician in the Revenue worked it out for me using approximate figures I gave to him. Trouble is that the formula he gave me was over the phone and I can't see from my notes how to calculate the figure to put on the CG tax form supplement. I'd be really grateful if someone could post a step-by-step formula.

[buildersmate]

Will this do you?
http://www.hmrc.gov.uk/pdfs/2002_03/capital_ga ins/sa108_notes.pdf
These are HMRC's notes on how to do it. The gist is probably that once your annual allowance is worked out and taper relief is taken into account, there is nothing for you to pay.
This document came from this bit of the HMRC website you may find other things here that can help.
http://www.hmrc.gov.uk/cgt/

[thorfinn]

Thank you, buildersmate - I already have the notes, which only say that if I haven't occupied the property for the complete period of ownership I may have to pay some CGT; no guidance beyond that. I did click on the second link you gave and found my way to the enquiry centre page. There's one in Glasgow, where I live, so I'll make an appointment and go to them with all my figures.

Thanks again,


Thorfinn

[kags]

were you posted abroad as part of your job? If so, then the period is exempt anyway. If the property was commercially let whilst you were away, then there are other reliefs available.If you would like me to do the calculation for me you can email me at
[email protected]
I am a Chartered Tax Adviser and a member of the Institute of Taxation.
I would need the exact dates of purchase, absence and sale, the costs of purchase and sale, selling and purchase costs (including stamp duty), plus the dates and costs of any improvements done to the property (not general maintenance). If you would prefer to omit the monetary figures, just give me the dates and I can give you the exact formula to calculte it yourself. This is all the information you would have to take with you to the tax office if you would prefer to go there.

[kags]

PS, if the property WAS let whilst you were abroad and you ask the tax office to do the calculation, make sure they look at Lettings Relief. It is a relief that often gets overlooked, and it is potentially extremely valuable.

[thorfinn]

Thanks kags and the others. What I actually did was get all my buying and selling information together (forgot about stamp duty but it didn't matter). I went to my tax office and spoke to a technician specialised in CGT. She talked me through it, worked it out and told me what to put on the form.

She was very helpful and I'd recommend anyone with a particular issue to follow this route.