Hello, if you have any questions or need further clarification after reading my answer please let me know.
what this property ever your main residence or was it a second home/investment property bringing rental income
Thank you for your response.
As it is a second home, I am sorry to say all gain is chargeable to CGT. You will get your capital gains annual allowance of £10,600 and the balance will be taxed at 28% (you being a higher rate tax payer).
If you need more information please let me know.
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Thank you for your response
There is no taper relief available any more so, there was no need to make reference to it in my answer.
I asked you if the property was ever your main residence ... this is looking for ways to mitigate the tax charge
In my answer, I stated all gain will be chargeable to CGT - gain is sale price less cost price including all costs incurred on improvements and costs associated with buying and selling of property. All expenditure should be supported either with receipts, invoices or some other proof of payment (bank statements etc). If you don't have records, be prepared for unsupported expense to be disallowed.
You have stated you had rental income from the property all the time... only you can confirm what was included in your property running expenses or not historically.. I don't think you can expect an expert to consider the rights and wrongs of your accounts for past years in the absence of information.
So to sum up the situation, allowable costs are costs based on facts .. the costs here would be purchase price, costs of capital improvements (supported) e.g kitchen and central heating, buying and selling agent's charges etc etc.
You keep your accounting records for 6 years in case there is an enquiry. You have not sold the properties and not prepared a statement of gain as yet. You would be expected to retain the records that support the figures to be submitted upon sale of property. The figures may never be challenged.
As far as CGT rate applicable to the gain, you would pay the lower rate of 18% if your total income including the net gain was below £42,475.