This month’s case is February 25th

Capital Gains Tax on sale of rental property

Introduction

Mrs B has owned buy-to-let properties for many years and has rented them out without any real problems. As the market improved, and he thought about his next move, he decided it was a good time to sell.

He expected there would be Capital Gains Tax to pay, but beyond that, he wasn’t quite sure what the process would be or what amount HMRC would want.

The problem

The first question is simple: “How to calculate the profit?”

Like most landlords, he assumed the sale price minus the purchase price. But once we started looking through the documents, it became clear that there were other things to consider such as legal fees, real estate agent commissions and repair work carried out on the property over the years.

He was also unaware there was a 60-day reporting deadline for residential property sales in the UK. This tends to throw people off, and can result in fines if filing late, even when taxes have been paid correctly.

Mrs B wants to make sure the entire process is completed correctly. He didn’t want to pay more taxes than he had to.

How we solve it

We examine the entire property ownership timeline, from acquisition to disposal, and compile accurate CGT calculations.

We check what costs are allowable, review repair costs to ensure they are treated correctly for CGT purposes, and explain clearly what HMRC will and will not accept.

Once the figures were confirmed, we prepared and submitted a 60 day CGT return and ensured the transaction was also reflected correctly on his Self-Assessment return.

Results

Mrs B knew exactly what taxes were due and reported them on time, without any last minute panic after completion. The calculations are fully supported by working procedures and documentation, so he has proof if HMRC asks questions at a later date.

Client Benefits

Mrs B avoided the 60 day deadline, claimed all allowable costs, and had the peace of mind that the CGT position was handled in line with HMRC’s expectations. Most importantly, he walked away knowing that he had paid the right amount of tax and not a penny more.

The post Cases of February 25 appeared first on ETC Tax.

Berita Terkini

Berita Terbaru

Daftar Terbaru

News

Berita Terbaru

Flash News

RuangJP

Pemilu

Berita Terkini

Prediksi Bola

Togel Deposit Pulsa

Technology

Otomotif

Berita Terbaru

Daftar Judi Slot Online Terpercaya

Slot yang lagi gacor

Teknologi

Berita terkini

Berita Pemilu

Berita Teknologi

Hiburan

master Slote

Berita Terkini

Pendidikan

Resep

Jasa Backlink

One Piece Terbaru