Please could some check my capital gains tax calculation for me....

Sarah-Lou

AAT won't licence me for CGT as I haven't had enough experience which is a shame as I love it, if there is anyone who would be able to cast their eye over the below transaction I'd be very grateful :001_smile:

The property was a holiday let which was left to my cousins (brother and sister) in equal share of 50/50. Brother bought sister's share during the last tax year. The costs below are just the sister's share (ie improvements)

Sale value £60000
No costs of disposal
Less allowable costs
Improvements (24618)
Probate value (20000)
Chargeable gain £15382
Annual exemption (10600)
CGT gain 4782
Tax at 18% 860.76

I'm really frightened to press 'submit' in case I have this drastically wrong!!!!!

Thank you lovely people :001_smile:

Sarah-Lou

JJH1969

Is she definitely in the lower tax band? The main things to check are that the expenses are correctly allowable.

Sarah-Lou

Thank you for your reply Yes, she is definately in the lower tax bank. She is a hairdresser and had very little income during the tax year as she had a baby.

The expenses (improvements) were t bring the property to a standard suitable for holiday lettings - it was quite run down when left to them.