[UK] Capital Gains Tax Calculation

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
walkingeejit
Posts: 14
Joined: Wed Apr 19, 2017 8:22 pm

[UK] Capital Gains Tax Calculation

Post by walkingeejit » Wed Nov 14, 2018 8:29 am

Hello,

I am trying to calculate my capital gains, and hoping someone would be willing to check my numbers. Below are the calculations:

Purchase Date: 11/01/2008
Move Out Date: 30/05/2016
Let between: 01/06/2016 01/06/2018
Sold Date: 11/08/2018

Sales Proceeds: £198,500.00
Less (Cost): £155,000.00
Gain:£43,500.00
Private residence relief: £33,720.93
Lettings relief: £9,779.07

Chargeable gain (Gain - PRR - LR): £0.00

I got to the chargeable gain of 0 understanding the following:

Private residents relief: (Months Living + 18 / months ownership) * Gain
Letting Relief: Lower of 3 figures.

1st: 40,000
2nd: private residents relief
3rd: (number of months rented, / months owned) * gain

My question is, have I understood how the PRR and LR work and calculated this appropriately?

Additional context; I am a non-UK resident.

Thank you for any help.

Post Reply