Capital gains

Mr.Ree

Can anyone shed any light on this?

Capitals gains. If a property is held over, let's say 10 years, the original capital invested was 10,000 and capital has now reached 100,000 including original investment. There is a gain of 90000. is this divided over the 10 years equally i.e 9,000 per year or is there another equation used to work out the gain per year over the 10 year period.

Answers on a postcard please!

Thank you.

elging

Capital Gains

The gain is realised on disposal, so that could be a gain of £90K less the annual exemption, but you don't mention whether this is a private residence or investment property, so there could be several other factors which could affect the chargeable gain.

Mr.Ree

Thanks, it was a private residence for the first 3 yrs and then let for the latter 7. I am assuming that taper relief comes into it somewhere, that aside I wondered how the capital gain is worked out over the period. Is seen as an equal gain over the period or whether another formula is used.