CGT calculator

CGT calculator

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I have a property that I bought in 1995 for £26K and it is now valued at £240K. During that time there has been periods of it being empty and being rented.
I am looking at possibly selling the property. Does anyone have calculator that could estimate (I don't need a detailed calculation at this stage) how much CGT I could possibly face by selling now vs leaving it till after 5 April 2008?
Also, I have some carried forward losses from renting the property, can this be offset against any CGT?

Anon

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By User deleted
08th Feb 2008 11:53

Yes I have
If you supply the MM/YYYY, purchase price ,as Indexation is involed with that year and your gross income including you gross rental profit then I will run the numbers for you and give you pre and post April figures.. I assume you have not lived in the property. No rental losses are carred forward to use against future rental gains not against your income or CG Regards Peter

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By User deleted
08th Feb 2008 10:16

You need an Accountant
Bearing in mind the many different scenario's, the computations are not easy and I can think of many instances where people prepared Capital gains tax computations, got them wrong, included them on their Tax Return and ended up with a tax enquiry. At the time they didn't have an Accountant.

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By AnonymousUser
08th Feb 2008 09:15

Urix - It is indeed NON business (unless a furnished holiday let). Common mistake to think letting is a business for taper purposes.

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By User deleted
07th Feb 2008 16:55

Can someone clarify non-business use?

House bought specifically to let in 1997.
Client let the property, wonders whether to sell before April.

Is this classed as NON-business use?

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By elpedro
07th Feb 2008 13:06

Additional points to note
Note in addition to those comments, non-business taper relief will also be lost post April 2008, however if you are a 40% tax-payer then 18% cgt rate would be preferable. There also is an annual exemption currently £9,200 being gain that will not be subject to tax. Allowable expenses can be offset against the gain too being usually solicitor fees and outlays, estate agent fees and property improvements (not repairs already offset against rental income deriving the carry-forward loss) involved in purchase and sale of property. Hope that helps.

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By Graham Bell
07th Feb 2008 11:56

Don't forget indexation
Up to April 1998 the cost of the property will be indexed - provided the sale is before 6 April 2008. If the sale is after 5 April 2008 all indexation is lost .

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By cathygrimmer
07th Feb 2008 11:05

Simple CGT comparison
It is pretty straightforward - assuming the property wasn't Furnished Holiday Lettings or, at some point, your main residence. Tax with full non-business taper relief (i.e. if sold before 6 April 2008) will be at 24% on your gain (i.e. 60% of 40%). 6 April and after it will be 18% under the new CGT rules.

I'm afraid rental income losses can't be set against capital gains.

Hope this helps

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