Excellent guide. After consulting a financial advisor to go through the figures of my inheritance I played/paused this video whilst completing my capital gains tax without any issues. Thank you.
Thanks for this video, I was extremely stressed over the sale of my rental property and the CGT implications but after watching this really helpful and informative video I will now take it in my stride!! Thank you.
Hi Simon, I watched the video and you didn't take into account the stamp duty that you paid when you purchased the property. I was always told that for your yearly self-assessment, you couldn't include the stamp duty you paid for the property on it, but you could offset that when you sold the property for capital gains tax
Hi Simon - this is a very helpful video thanks. My wife and I are selling a long term rental property - When I entered this part of the tax reporting for CGT it became clear that you had to complete and report after completion ... and I wanted to get some of the information inputted before completion ...and save it until completion ! So your video was very helpful.
If you have both completion statements when purchasing and selling and have all invoices figures/invoices relating to allowable capital costs do you really need to pay an accountant to file a capital gains return your video makes it seem simple enough to do yourself? Thanks
If you feel comfortable doing the tax return yourself then feel free to do so. An accountant is there to verify that the numbers are correct and to give people comfort and confidence. If you have these then there is no need to speak to an accountant. Good luck 👍
Brilliant and has helped me, we have a sale going through on a rental property which will result in a large gain as we bought it in 1990, but lived in it for 22 years then rented it out. Do I have to work out the private residence relief or will this be calculated for me when I fill in this section of the CGT form. As the house is in joint names, I assume we both put 50% owner ship on our respective forms … many thanks
Having completed, submitted and paid the CGT report on a residential property disposal on 15.05.2021, do we now have to enter the same details again on the 2021/22 Tax Return? and if so will HMRC automatically pick up the fact that the tax has already been paid. Great video by the way.
What a great video, many thanks Simon. I have a quick question, my 2 sisters and I own 1/6th each of my mothers home which will be sold next week as she has moved into a care home. There were 3 fairly large expenditures in the last 10 years, a new boiler (to be more efficient), new windows and doors (mainly to make the property more secure), and a modern electric fire to replace an older gas fire. Would we be able to offset any/all of these against our CGT liabilities?
Yes provided that the expenditure was not identified as cost in a self assessment tax return (if there was ever rental income). Receipts will be required
Thanks for the grest video! I've just sold my property, that was my only property that have lived in for almost 4years. It was my main residence that I always lived in and never sublet it to anyone. I spoke with hmrc and was told I still have to report it. I've started the online process, the same as presented in the video. Didn't complete it as I got stuck..Im buffeled now having watch the video. As I understand I dont need to pay anything. Can you please comment? Many thanks
You really do need to speak with a tax specialist to see if you have a taxable gain. There is no way of telling without going through all the details and identifying all the possible tax saving reliefs.
Hi Simon, I have sold my an investement house buy-to- let a few days ago. After all costs inc solicitors, brokers and early bank repayment, plus tax year allowance 12300f, there was no profit on it. Do I still have to report to HMRC if there's no capital gains ?
HMRC say that you do not need to report any capital gains thrown on. In your case, you would not need to report. However, if you submit self-assessment Tex Jones I would suggest that you find a capital gains tax report to HMRC anyway. I say this because it gives them evidence that no games with made long before the self-assessment tax return is submitted
Hi Simon Have tried to set up my capital gains account am going wrong have my calculation ready have a gov ID is there a step by step guide i could buy from you
Hi Simon, Can you help please. If two people who 50% each jointly own and sell a property for CGT reporting do you list the full property sale value or 50% of the sale value on each report? Also do both get the £6000 allowance? Thanks you're a great channel.
Hi Simon, where can I find the C G T calculation for you mentioned with what I can claim for. Also if selling a property with my husband do we both do c g t forms stating 50% ownership?
Is this just for Property I.E Houses or does this rule include property as in shares/crypto. Do HMRC do this deliberately to catch people out. So they can take your money at any time you mess up down the line.
Hi Simon, enjoyed the video, it really is making it look easy and stress free once i get signed in to do it. But, Have you ever heard of anybody struggling to set up the account with HRMC. keep making it all the way thought and answering all the security questions correctly only to be told I need to " sign in with the same government gateway user ID used to create your capital gains tax on Uk property," I cant understand why I cant get in. could it be because I had a accountant process a sale for me a few months ago and I am now trying to do this one ( another sale ) my self, could the accountant hold the user ID's ? any advice will be greatly appreciated.
Hi, if in your example you had 24k losses from previous year to carry forward. Could you have used your yearly PA and then some of your losses to mitigate the CGT? Or are you forced to use up all of your losses before the PA?
Very informative thank you. Can you put the purchase price and the selling amount calculated with all estate agent / solicitors etc already included and say no to the selections for these extra costs? Many thanks.
Yes thanks. In your example video you put £175000 as a buy cost but nothing for estate agents / sols etc saying it's included in the 175000 in the sell it 200000 but here you ad 1000 for estate agents / sols. My question is can I add the extra costs estate agents/Sols etc all in the buy and sells property amounts and NO in the two extra cost questions? I.E. must the extra estate agents/sols costs always be shown separately?
How would this be completed on a property that was 50% owned by someone now deceased and so the 50% of the value is calculated at the date of passing away? As the question states how much did you own with no equivocation it would seem?
@@UK-Property-Tax-Accountants Good Morning. Thank you most kind. You may consider another nuanced question that may apply in some cases could be say half of said property calculated at passing away date say 2022 and they become or already were non resident so the other half is calculated at Apri 2015 unless you cant do that for reasons I do not know.
I recently sold a shop for £200,000,the details of which I need to submit to HMRC in order to pay capital gains tax.I bought the shop in 1992 for £25,000,although,I recall at the time the seller wanted the declared price to be £20,000,and the additional £5,000 to be an 'under the table' cash payment.Perhaps,naively I went along with his request,as I wanted to purchase the shop,and it has been a good investment.My question is,does HMRC have a record somewhere in it's vaults of the purchase price of my shop,secondly,do they make allowances for the considerable price gain I have made in that thirty years have elapsed for me to make this gain.I have recently retired,and have never been a high rate taxpayer,but after watching your video,I am concerned my considerable gain may be subject to a capital gains rate of 28?%. I would be grateful for your comments.
You need all supporting documents to the CGT calculation. There are no allowances to speak of but speak with your accountant about possible indexation allowances. The rate of tax is 10% for basic rate taxpayers and 20% for high rate taxpayers. With all that said speak with your accountant to go through the workings with you to avoid a costly mistake
I am married and live with my wife in her house.I am currently selling a house which I own and as my small pension is below the tax threshold I do not pay tax.Am still liable for Capital Gains Tax?
You don’t need to upload receipts but maybe upload a spreadsheet that details all receipts including the completion statements. Do keep your receipts in an envelope for future reference.
Hi Simon, another great video. I was wondering, from what you have said it seems tax of at least 18% is payable on all gains above the CGT threshold. If somebody has earnings below £12,000 is it possible to use some of that personal allowance for CGT purposes. Say somebody earns £6,000 and has a gain on a property sale of £18,300, after the CGT allowance of £12,300 it leaves a taxable gain of £6,000. Would they still pay 18% on that gain, or would the remaining £6,000 of personal allowance cover this gain?
Request a call back: If you are looking for a new US or UK real estate property tax specialists contact us here: survey.zohopublic.com/zs/80zrXp
Use our new free Capital Gains Tax Calculator here: www.optimiseaccountants.co.uk/uk-capital-gains-tax-calculator/
Excellent guide. After consulting a financial advisor to go through the figures of my inheritance I played/paused this video whilst completing my capital gains tax without any issues. Thank you.
Glad it helped Chris 👍
Free CGT Calculator:
www.optimiseaccountants.co.uk/uk-capital-gains-tax-calculator/
Capital Gains Tax Calculator £9.95: bit.ly/2XkxbTF Download now. CGT 30 days reporting: th-cam.com/video/T4YIvGUCAdI/w-d-xo.html Self assessment tax adjustments: CGT 30 day reporting and tax return adjustments th-cam.com/video/M6B2mHac6_g/w-d-xo.html
Thanks for this video, I was extremely stressed over the sale of my rental property and the CGT implications but after watching this really helpful and informative video I will now take it in my stride!! Thank you.
Phew 😥 I am relieved for you too
Hi Simon, I watched the video and you didn't take into account the stamp duty that you paid when you purchased the property. I was always told that for your yearly self-assessment, you couldn't include the stamp duty you paid for the property on it, but you could offset that when you sold the property for capital gains tax
Yes indeed and will be part of your acquisition costs.
Hi Simon - this is a very helpful video thanks. My wife and I are selling a long term rental property - When I entered this part of the tax reporting for CGT it became clear that you had to complete and report after completion ... and I wanted to get some of the information inputted before completion ...and save it until completion ! So your video was very helpful.
I am pleased to hear that. Good luck 🤞
If you have both completion statements when purchasing and selling and have all invoices figures/invoices relating to allowable capital costs do you really need to pay an accountant to file a capital gains return your video makes it seem simple enough to do yourself?
Thanks
If you feel comfortable doing the tax return yourself then feel free to do so. An accountant is there to verify that the numbers are correct and to give people comfort and confidence. If you have these then there is no need to speak to an accountant. Good luck 👍
Many thanks, clear and to the point.
Thank you that is most kind of you to say and you are very welcome
Brilliant and has helped me, we have a sale going through on a rental property which will result in a large gain as we bought it in 1990, but lived in it for 22 years then rented it out. Do I have to work out the private residence relief or will this be calculated for me when I fill in this section of the CGT form. As the house is in joint names, I assume we both put 50% owner ship on our respective forms … many thanks
This might be useful for you www.optimiseaccountants.co.uk/tax-calculators/
Having completed, submitted and paid the CGT report on a residential property disposal on 15.05.2021, do we now have to enter the same details again on the 2021/22 Tax Return? and if so will HMRC automatically pick up the fact that the tax has already been paid. Great video by the way.
You will need to enter it manually as the two systems are unconnected.
Thank you for the kind comment Timothy. Very much appreciated
@@UK-Property-Tax-Accountants Thanks for your help - SA Return now sorted!
Brilliant news. See you next year 😎🙏
Very informative, great work.
Thank you ever so much 🙏
Hi Simon am I correct in saying if you make a loss after all allowable deductions you dont submit a CGT report?
Correct, unless you are a non-UK resident
What a great video, many thanks Simon. I have a quick question, my 2 sisters and I own 1/6th each of my mothers home which will be sold next week as she has moved into a care home. There were 3 fairly large expenditures in the last 10 years, a new boiler (to be more efficient), new windows and doors (mainly to make the property more secure), and a modern electric fire to replace an older gas fire. Would we be able to offset any/all of these against our CGT liabilities?
Yes provided that the expenditure was not identified as cost in a self assessment tax return (if there was ever rental income).
Receipts will be required
@@UK-Property-Tax-Accountants Much appreciated Simon.
You are very welcome 🙏
Thanks for the grest video! I've just sold my property, that was my only property that have lived in for almost 4years. It was my main residence that I always lived in and never sublet it to anyone. I spoke with hmrc and was told I still have to report it. I've started the online process, the same as presented in the video. Didn't complete it as I got stuck..Im buffeled now having watch the video. As I understand I dont need to pay anything. Can you please comment? Many thanks
You really do need to speak with a tax specialist to see if you have a taxable gain. There is no way of telling without going through all the details and identifying all the possible tax saving reliefs.
Hi Simon,
I have sold my an investement house buy-to- let a few days ago. After all costs inc solicitors, brokers and early bank repayment, plus tax year allowance 12300f, there was no profit on it. Do I still have to report to HMRC if there's no capital gains ?
HMRC say that you do not need to report any capital gains thrown on. In your case, you would not need to report. However, if you submit self-assessment Tex Jones I would suggest that you find a capital gains tax report to HMRC anyway. I say this because it gives them evidence that no games with made long before the self-assessment tax return is submitted
Hi Simon Have tried to set up my capital gains account am going wrong have my calculation ready have a gov ID is there a step by step guide i could buy from you
What like this one but for free 🤗 th-cam.com/video/T4YIvGUCAdI/w-d-xo.html
Hi Simon, Can you help please. If two people who 50% each jointly own and sell a property for CGT reporting do you list the full property sale value or 50% of the sale value on each report? Also do both get the £6000 allowance? Thanks you're a great channel.
I would only enter your share of the monetary values 👌
Thanks so much. That's helpful. Do both each get the £6K allowance on the one sale?
Each gets £6k allowance 🙏
Hi Simon, where can I find the C G T calculation for you mentioned with what I can claim for. Also if selling a property with my husband do we both do c g t forms stating 50% ownership?
You can buy any of our tax calculators via our website: www.optimiseaccountants.co.uk/tax-calculators/
Is this just for Property I.E Houses or does this rule include property as in shares/crypto. Do HMRC do this deliberately to catch people out. So they can take your money at any time you mess up down the line.
This TH-cam channel focuses just on property tax when it comes to CGT. We don’t tend to focus on crypto currency
Hi Simon, enjoyed the video, it really is making it look easy and stress free once i get signed in to do it. But, Have you ever heard of anybody struggling to set up the account with HRMC. keep making it all the way thought and answering all the security questions correctly only to be told I need to " sign in with the same government gateway user ID used to create your capital gains tax on Uk property," I cant understand why I cant get in. could it be because I had a accountant process a sale for me a few months ago and I am now trying to do this one ( another sale ) my self, could the accountant hold the user ID's ? any advice will be greatly appreciated.
The only thing I can recommend is to call HMRC on 0300 200 3310
Hi, if in your example you had 24k losses from previous year to carry forward. Could you have used your yearly PA and then some of your losses to mitigate the CGT? Or are you forced to use up all of your losses before the PA?
You have to use up your losses first and then annual exempt amounts
Very informative thank you. Can you put the purchase price and the selling amount calculated with all estate agent / solicitors etc already included and say no to the selections for these extra costs? Many thanks.
Would you mind giving me an example so that I can see it’s a bit more clearly?
I will respond to soon as I see it
Yes thanks. In your example video you put £175000 as a buy cost but nothing for estate agents / sols etc saying it's included in the 175000 in the sell it 200000 but here you ad 1000 for estate agents / sols. My question is can I add the extra costs estate agents/Sols etc all in the buy and sells property amounts and NO in the two extra cost questions? I.E. must the extra estate agents/sols costs always be shown separately?
Yes that is indeed possible 👍
Thank you. You provide very helpful information. You're a star!
You are very welcome 🙏
How would this be completed on a property that was 50% owned by someone now deceased and so the 50% of the value is calculated at the date of passing away? As the question states how much did you own with no equivocation it would seem?
An interesting point. Thank you for asking the question. I will certainly put my mind to it and create a video for you
@@UK-Property-Tax-Accountants Good Morning. Thank you most kind. You may consider another nuanced question that may apply in some cases could be say half of said property calculated at passing away date say 2022 and they become or already were non resident so the other half is calculated at Apri 2015 unless you cant do that for reasons I do not know.
Great question.
Sadly it is not something that I can answer on a TH-cam form like this.
The answer and comeback questions would be too complicated
I recently sold a shop for £200,000,the details of which I need to submit to HMRC in order to pay capital gains tax.I bought the shop in 1992 for £25,000,although,I recall at the time the seller wanted the declared price to be £20,000,and the additional £5,000 to be an 'under the table' cash payment.Perhaps,naively I went along with his request,as I wanted to purchase the shop,and it has been a good investment.My question is,does HMRC have a record somewhere in it's vaults of the purchase price of my shop,secondly,do they make allowances for the considerable price gain I have made in that thirty years have elapsed for me to make this gain.I have recently retired,and have never been a high rate taxpayer,but after watching your video,I am concerned my considerable gain may be subject to a capital gains rate of 28?%. I would be grateful for your comments.
You need all supporting documents to the CGT calculation. There are no allowances to speak of but speak with your accountant about possible indexation allowances. The rate of tax is 10% for basic rate taxpayers and 20% for high rate taxpayers.
With all that said speak with your accountant to go through the workings with you to avoid a costly mistake
I am married and live with my wife in her house.I am currently selling a house which I own and as my small pension is below the tax threshold I do not pay tax.Am still liable for Capital Gains Tax?
It is possible that you will pay CGT above your £3,000 annual allowance. Please get some tax advice before you sell.
Hi Simon
Thank you for all this great videos.
Do we need to upload all the receipt at the end or just the completion statement??
You don’t need to upload receipts but maybe upload a spreadsheet that details all receipts including the completion statements. Do keep your receipts in an envelope for future reference.
Great stuff
Thank you that is very much appreciated
was nearly 2 years why down 2 30 days
You will need to speak to HMRC on that one. It has been increased to 60 days now though
Hi Simon, another great video. I was wondering, from what you have said it seems tax of at least 18% is payable on all gains above the CGT threshold. If somebody has earnings below £12,000 is it possible to use some of that personal allowance for CGT purposes. Say somebody earns £6,000 and has a gain on a property sale of £18,300, after the CGT allowance of £12,300 it leaves a taxable gain of £6,000. Would they still pay 18% on that gain, or would the remaining £6,000 of personal allowance cover this gain?
You get a capital gains tax exempt allowance each year of £12,300 and then it hits your personal banded tax rates.
KGF 2
KGF?