...to ask for help with capital gains tax

[toomanydicksonthedancefloor1]

I am asking for help with my mums tax return. She's in her 70s and never done one before. I have basic experience of doing mine and my husbands (landlords). My basic knowledge comes from reading HMRC help guides and phoning them for advice.

My mum wasn't able to sell her house even though it was on the market for 3 years. She needed living accommodation on one level, that was her reason for trying to sell. She had lived there 20 years and it was mortgage free.

She therefore rented out her house and rented a suitable property herself. This was 3 years ago. As I am a landlord I was then able to do her relatively easy tax returns for her. A year ago when her tenant left she decided to try and sell again, and sold it almost immediately (without her ever returning to live there). It sold for around £117,000.

So now it comes to me doing her tax return again for her and I haven't a clue about capital gains tax? Will she need to pay it and if so what do we need to do with regards to her tax return?

She is on a state pension, no other income. The money from the sale is invested, in savings and being spent on her living expenses. She's not great with money!

Hope I've included everything relevant but please let me know if not.

Any help would be so great, feel really out of my depth with this one, and don't want to do it wrong.

In case my last post was confusing, just to make it clear that if you claim PPR relief there will be no loss to carry forward even if it did end up in a loss.
But if you calculate the gain not claiming the PPR relief and end up with a loss then you can carry it forward. You will assess it for yourself depending whether you think there's a normal loss involved and you have other current year capital gains or future gains etc.

Calic0

Ah right that's a good explanation. Thanks so much. So it would apply to something additional that is added to the house such as an extension or garage added. But not when you replace something which is already there? Knowing my mum she probably still has the invoice from 19 years ago for the conservatory!

Gapinorder

Right I think that is all making sense now, thank you so much. She doesn't have any other properties/assets or income apart from her state pension and that isn't likely to change. So I don't think there's any reason to carry the loss forward and not claim the relief.

Do you mind if I ask, do you work in this field? You are very knowledgeable!

Thanks so much !

Hi yes I do work in the field. Shout if you need anything else!

I am ringing her on Thursday or Friday to go through the figures to complete her return, so I may well have other questions!

Honestly, can't thank you enough!

No worries