Capital Gains Tax

[CarmelBeach]

Sorry, this is a bit of a piece of string question

My parents are looking to sell an investment flat. I think £180,000 is a likely price, they bought for £50,000 a long time ago.

The gpvt calculator looks like the CGT payable might be £30k. Does this seem about right?

I tend to think tax is tax and there's not much point paying an accountant as there's no way out of this, is there?

Thanks.

Hopeful bump

I would speak to an accountant, they know all the (legal) tricks to reduce tax bills. My MIL saved about £20k on her Capital Gains bill.

@CarmelBeach

Sorry, this is a bit of a piece of string question

My parents are looking to sell an investment flat. I think £180,000 is a likely price, they bought for £50,000 a long time ago.

The gpvt calculator looks like the CGT payable might be £30k. Does this seem about right?

I tend to think tax is tax and there's not much point paying an accountant as there's no way out of this, is there?

Thanks.

If you are 100% confident that you will utilise all of your parents allowances and allowable expenses, and you know how to accurately delcare the gain to HMRC then I would go alone.

However, any doubts, them paying a professional to do it is the sensible thing to do IMO.

Reporting a taxable gain is very straightforward - you need an HMRC gateway account then you just fill in an online form.

Assuming they have made no gains elsewhere, the rough calculation is :

Sale price - purchase price = £130k
Deduct any buying/selling/renovation costs to get the taxable gain
CG exempt amount of £12,300 each (assuming jointly owned)
Tax this at 18/28% depending on whether they are basic or higher rate taxpayers. It's likely a gain of this size would push them both into the higher rate bracket unless they literally have zero other income.

@namechangedasouting

Reporting a taxable gain is very straightforward - you need an HMRC gateway account then you just fill in an online form.

Assuming they have made no gains elsewhere, the rough calculation is :

Sale price - purchase price = £130k
Deduct any buying/selling/renovation costs to get the taxable gain
CG exempt amount of £12,300 each (assuming jointly owned)
Tax this at 18/28% depending on whether they are basic or higher rate taxpayers. It's likely a gain of this size would push them both into the higher rate bracket unless they literally have zero other income.

Thank you Based on this, yes

What's confusing about the gov calculator is it asks about the personal tax allowance and not the CGT allowance which led to a glimmer of hope it might not be that high! But it looks like it is that high if I do my own calculation and ignore the calculator.

Thank you all.