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

Sarah-LouSarah-Lou Well-KnownRegistered Posts: 141
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

Comments

  • JJH1969JJH1969 Feels At Home StaffordshireRegistered Posts: 110
    Is she definitely in the lower tax band? The main things to check are that the expenses are correctly allowable.
  • Sarah-LouSarah-Lou Well-Known Registered Posts: 141
    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.
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