Capital Gains Tax 2019/20

[lonelyfemale]

I sold a property last year that was once my main residence. I moved back into my property last year for a bit and re-registered with the doctors. Will this ease my capital gains burden? Also does my left-over personal tax allowance offset against my capital gains tax allowance or are these treated as two separate things?

I want to fill in my tax return early to get it over and done with but worried about what paperwork I might need for the capital gains part of the tax return?

Any advice greatly received.

You really need an accountant! CGT on a rental property you have moved in & out of is horribly complex (Been there, done that, got t-shirt & HMRC penalties for getting it wrong.
Make that get a really good accountant!

I've gone back old accountant and when I called her to check everything was OK her assistant said it was in a big queue.....I just thought I'd post again because I got a tax demand email at 4am in the morning last time I posted so if it wasn't just a coincidence, I'd post here to let the tax man know...so glad I sold last tax year as well!

The only accountant I trust to do my tax return is so busy (mine is very complicated and in a long queue) I am starting to worry whether it will be done by 31st January 2021 and will the government be extending tax returns deadline to 31 March 2021 due to COVID-19 this year????

@lonelyfemale

The only accountant I trust to do my tax return is so busy (mine is very complicated and in a long queue) I am starting to worry whether it will be done by 31st January 2021 and will the government be extending tax returns deadline to 31 March 2021 due to COVID-19 this year????

Just get another accountant. Why don't you trust them? They just input the information you give.

Because I used to work for (several of them).

Extended periods of absence from your home for employment or for any other reason still count as being occupied for CGT relief. The clue is in the word 'absence' which means you must reoccupy it. This you appear to have done so long as registering with the doctor was just to make it look real when you were in fact living somewhere else. You need to draw up a timeline from purchase to sale and then take some advice.

The personal income tax allowance cannot be used to cover your capital gain. Again the answer is in the title - it is an allowance for income tax only.

Yes but I have also paid British Gas and other bills not just using the doctor. But to complicate things a bit I have re-invested the money in shares (which also have an allowance of £12,000 capital gain). I have not sold the shares yet but I hear this year if you sell you have to file said return within 30 days? (But I haven't). Besides which I am also self-employed (not receiving any benefits) and the local college want me to take on 1 or 30, 16 year olds at £3,000 each? Obviously I have had ignore said request as unfortunately my self-employed income is currently 0.

I have also had to pay estate agents, solicitors twice (buying and selling costs) and various other costs. Plus I have on top of my self-employed activities done paid work for various temp agencies.

As I said previously I only trust the accountant I have chosen so far (myself and my husband have used her service's satisfactorily several times before) plus to used another account would require another wait 2 weeks for the government to send through another 64-8 to give them permission to act on my behalf).

Plus if everything else (mortgages, rent, electric bill) is on holiday for 3-6 months then surely the tax deadline should be extended as well?

Paying bills is only relevant if it is because you reoccupy as your home, not transiently in order to make it look as if you are living there. You need to have reoccupied as a home. If you let the property you will also be entitled to 'lettings relief' which can be quite substantial.

The 30 day time limit to file a return is for sales of residential property that exchange after 5 April 2020. Not before, and not shares in any event. You need to file electronically by 31 January and if not already in the self-assessment programme then notify HMRC by 5 October to put you in it.

Your CGT allowance is used against proper gains, when you sell, not paper gains where they go up in value.

A good accountant, solicitor or other professional really says 'your are in a big queue'. They would sense your concern and call you.

I don't think the tax deadline will be extended to suit your inflexibility towards accountants.

My accountant friend said the rules changed this April to make it worse. When I checked hmrc website, sounded like in the previous tax year you got a ‘free’ 6 months at the end of you owning the home added to your number of months you had living there.

I’d check the website and work it out stage by stage.
No idea about the personal allowance.

I'm not being in-flexible to accountants. I'm being a loyal customer to one accountant! (Rather than go around and around). But loyalty and repeat custom is obviously not so respected by some anymore!

Also if it's not another coincidence, Companies House had just sent me a reminder as well. Fortunately, as I said I am self-employed so all my trades I can put on my 'self-employed' tax return NEXT tax year (thank God).

But as you mention solicitors, I've worked for quite a few of those as well! (the ones that charge £200 per phone call and letter....and then need an Indemnity Fund!

Your facts are a bit muddled OP. You say you are self-employed but obviously operate via a limited company which makes you employed and a shareholder. You need some good integrated tax advice. If you come up too short to save money it may cost you more in fines and aggravation depriving you of time to focus on your business.

I'm not being in-flexible to accountants. I'm being a loyal customer to one accountant!

Unreasonably do. You say she may not get your accounts done in time for the deadline and are suggesting there should be an extension for this tax year. It's a bit of cutting off your nose don't you think? You could easily have your accounts done and in by the end of January, your loyalty is incredibly misguided here.

if you want to have a go yourself:
www.gov.uk/tax-sell-property/work-out-your-gain
scroll down to the green button "calculate your capital gain".
It's just for information no need to put in your name and address or any personal details..

That link does not help a taxpayer work out their exempt amount of the gain and the elements such as lettings relief and other reliefs. It merely provides a calculation of your gain before those reliefs. Time would be better spent doing other things and paying for professional advice.

I went through the process earlier. It asks if you are eligible for private residence relief and lettings relief and amounts and provides links and explanations to work it out.