Hi,
Myself and a friend purchased a property on 3/5/00, and completed a sale on 21/5/04. It was let for the whole period, and neither of us ever lived in it.
Purchase Price £38,500 Expenses £3707.25 Selling Price £95,000
Total Capital Gain £52,795.75
Half of Capital Gain £26,396.37
Chargeable Gain @ 90% after 4 years £23,756.73
Individual Allowance 2004-2005 £8,200
Gain added to Income £15556.73
Charged @ 20% Tax Due £3111.35
Charged @ 40% Tax Due £6222.69
Is this correct? Are there any other allowances that could be applied?
I am assuming that lettings relief is only available if the property has been a PPR?
My accountant will be dealing with my return, but forewarned is forearmed