Q: Dear All,

I am hopefully on track to sell a secondary property that I bought just over 6 years ago as an investment. It has done well, but after calculating the purchase u0026 selling, taper relief and my wife and my own exemptions, we still have a decent ￡ 11K capital gains tax bill to the property pay.
I are strengthened by having been converted and I think will add to the expenses, but will not reduce the overall tax bill by many and now try to ask you three questions of people who learned -
1) Is there anything else I can consider my bill further reduce?
2) As I am independent and my annual accounts run from January until December, then I probably have to pay this amount?
3) If I CGT amnesia, how could IR aware of my win if not by me,? Lawyer? Cadastral?

Many thanks

Merlin.

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A:The new rules coming in April will give an increased audit trail as well as that will record purchase price, sale price and rental as well. Whilst the new rules are being touted as helping tenants, many see it is helping the HMRC even more.

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A:Land Registry, Stamp Duty return and the fact that the rent has stopped coming in (you were putting it on a tax return, weren't you?)

Quite, Bob. Not exactly a surreptitious little "cash in hand" jobby selling a property. It leaves quite a nice audit trail for the Revenue if you did have a memory lapse. :rolleyes:

It may be they wouldn't cotton on – but the penalties are up to 100% of the tax owed plus interest and it's doubtful they'd confine themselves to the unpaid CGT and would probably do a full enquiry into that year and possibly earlier years of your tax affairs. You couldn't really blame them for being suspicious about your other tax returns if they caught you failing to declare what could be a fairly substantial wodge of tax, now could you?

Your call though!

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A:3) If I have CGT amnesia, how would IR be informed of my gain if not by me, ? Solicitor ? Land registry?

What is the answer to this as I have always wondered myself/
Land Registry, Stamp Duty return and the fact that the rent has stopped coming in (you were putting it on a tax return, weren't you?)
The OP needs to work with his accountant to minimise his SE income in the year that he make the capital gain.

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A:3) If I have CGT amnesia, how would IR be informed of my gain if not by me, ? Solicitor ? Land registry?

What is the answer to this as I have always wondered myself/

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A:The event leading to the CGT liability is the sale of the property. If the completion date was in the 2006/07 tax year, you would include it in your tax return 2006/07; paying the tax, according to current rules, by 31 January 2008.

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A:As the last reply stated your intial expnese are all deductable. Please note the CGT is also indexed linked so you may benefit from that as well.

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A:some of your initial buying costs can be offset on sale to mitigate CGT – check with your accountant or IR – things like solicitors fees, and capital expenditure costs on the property i think.

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A:If you moved into it for some time before you sold it ….. it would be your primary residancy.

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