CGT on rented house being sold.. Help please

[Muffinb]

Hi everyone, can anyone help me??
Huby and I have house that we purchased in 1998 for £110,000 (€150,000), lived in it till July 2004 (6 years), rented out since then (3 years). Am about to sell for about €620,000.

How much CGT are we liable for??
I think solicitors fees, selling agent fees etc would come to about €10,000 as I understand I think that these are deductable.
Anyone help me out?? Ots bot just a straight 20% liability is it?? That would mean we owe about 20% of 470,000!!!!!

Please put me out of my misery...
Muffin x x

 

[Graham_07]

Re: CGT on rented house being sold.. Help please!!??

1) You get relief for the period of residence (PPR) 6 yr
2) The last 12 months ownership is deemed residence. 1 yr
3) Indexation for inflation allowable as purchase pre 01/01/03

Roughly ( open to correction tho' ) :-

Sale proceeds 620,000-10,000 = 610,000 (net sale proceeds)
Cost 150,000 index for 1998 - 2007 = 1.212 = 181,800 (indexed cost )
Gain = 610,000 - 181,800 = 428,200
Chargeable gain 2/9ths ( 7 of 9 yrs PPR )= 95,155
Personal exemption (assumed not otherwise used ) 1,270x2=2,540
Taxable gain= 92,615
Tax at 20% = 18,523. (approx. )

Please do have the proper calculations worked out professionally tho'.

If sale before 31/12/07 CGT due by 31/01/08
If sale after 31/12/07 & before 30/09/08 CGT due by 31/10/08

 

[Muffinb]

Re: CGT on rented house being sold.. Help please!!??

Thanks Graham, thats sooo much better than my figure!!! Gosh my heart was thumping at the thought of it!

Will def get some prof advice anyway but its nice to see its not a massive figure and we have been so lucky so far and cant complain if have to pay something to the Taxman...

 

[Graham_07]

Re: CGT on rented house being sold.. Help please!!??

No problem. But remember the taxman should only get what is fairly due, no more no less so make sure you have all the allowable expenses in. Addiitonally, there may also be relief on any "enhancement" to the property since purchase which may be able to be included. Your advisor will advise more on this but say you added a conservatory for €15,000 in 2003 that would be onto the cost but not indexed for inflation like the original as indexation stopped in 31/12/02.