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Anyone know anything about Capital Gains Tax and filling in your tax return?

(22 Posts)
LittleMyDancingForJoy Sun 17-Aug-08 16:51:47

Quick question for any accountants out there - DP and I sold our house in 2007 and I'm having to declare it on my tax return. (So's he, obviously)

As it was jointly owned, do I just fill in all the boxes with half the amounts (i.e. purchase price, sale price etc)? If I put in the full amounts there doesn't seem to be anywhere to say that we need to claim two allowances against the gain, iyswim.

WideWebWitch Sun 17-Aug-08 16:52:47

I think if it's your main and only house there's no capital gains

tribpot Sun 17-Aug-08 16:53:31

Was it your own home, as in you'd lived in it prior to selling it? If so it's exempt anyway.

Best of luck with the tax return, I've just finished dh's online. What a pain!

LittleMyDancingForJoy Sun 17-Aug-08 16:53:59

you still have to declare it, and claim private residence relief. and also we let it for about four years, so it's all a bit complex.

SqueakyPop Sun 17-Aug-08 16:56:57

If it were liable for tax on the gain, then you would fill in half on each return, and I think you can do whatever split you like.

But as WWW says, there is no CGT on your main residence.

tribpot Sun 17-Aug-08 16:57:32

Oh right, you mean the final four years before it was sold? Were you declaring the income from rent at the time? I assume so.

I think you put half the amounts on each form - as you say, there's no way to link the returns together to HMRC can consider the tax implications. I'd give them a call and ask.

LittleMyDancingForJoy Sun 17-Aug-08 17:12:38

yes, we declared the income at the time.

Even after private residence relief and taper relief there's a small chargeable gain, which should be covered by our personal allowance as long as I split the figures in half.

LittleMyDancingForJoy Sun 17-Aug-08 17:53:44

Thanks for advice, all - was hoping to avoid calling their diabolical helplines. Anyone else out there know for sure?

LittleMyDancingForJoy Sun 17-Aug-08 20:52:16

Any accountants lurking this evening can tell me whether I just split the amounts?

MrVibrating Tue 19-Aug-08 19:17:36

If the asset was jointly owned and there are no other complications then the amounts should be split.

LittleMyDancingForJoy Tue 19-Aug-08 21:19:50

thanks so much! had given up hope of this one being answered by someone in the know.

asset jointly owned, no weird complications, so shall split the amounts on our returns.

Thanks!

ChasingSquirrels Tue 19-Aug-08 21:23:53

yes split it, I had exactly this on last years return.
Proceeds less costs of sale
less purchase price and costs of purchase
less indexation (depending on when purchased)
less taper relief
less ppr (including the last 3 years regardless of whether you lived in it)
less lettings relief - are you aware of this one?
(couldn't voucher for the order of the above)
then annual exemption

LittleMyDancingForJoy Tue 19-Aug-08 21:33:56

is lettings relief only applicable if you let part of it, or all of it?

LittleMyDancingForJoy Tue 19-Aug-08 21:34:28

done taper relief and ppr. bought it in 2001 so no indexation relief, iirc?

ChasingSquirrels Tue 19-Aug-08 21:35:21

hum, well definately if you let all of it. which did you do?

ChasingSquirrels Tue 19-Aug-08 21:36:03

yes, ours was older - hence indexation

LittleMyDancingForJoy Tue 19-Aug-08 21:36:24

all of it - i got the impression letting relief was only if you let part of it, but will go back and have another look on the oh-so-helpful HMRC site wink

ChasingSquirrels Tue 19-Aug-08 21:44:35

this is as clear as mud in the wording!

LittleMyDancingForJoy Tue 19-Aug-08 21:59:56

brilliant - have figured it out, seems we can have £40,000 of lettings relief, whcih means I don't have to wade through all our improvement costs adding them up to get under the allowance!

you're all fab, thanks.

ChasingSquirrels Tue 19-Aug-08 22:01:52

up £40k - the max is limited by the amount of PPR you got. Its a little known relief, I suppose it doesn't arise that much.

LittleMyDancingForJoy Wed 20-Aug-08 09:33:50

Yes, it's quite complicated as well isn't it? The lower of three figures, is that right? either £40k, or the amount of PPR, or the amount of gain deemed to have taken place during the letting.

I think we are entitled to the full £40k, which is flipping brilliant, as it reduces our chargeable gain to something tiny like £1000 each, well under the personal allowance for the year.

Hooray! Thanks again!

ChasingSquirrels Wed 20-Aug-08 16:24:13

yes the lower, sounds like you are sorted, glad you get the relief - makes a big difference for you.

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