Property Taxation (CGT)

Question 1

What is the formula for calculating the ‘Chargeable Gain’ in CGT for property?

Answer 1

Price sold - Price bought - Costs acquiring/improving property

Costs acquiring / improving = e.g. surveyor fees, SDLT, renovation costs

Question 2

What rate of CGT is paid on property for:
(a) Basic rate taxpayers
(b) Higher / additional rate taxpayers

Answer 2

(a) 18%
(b) 24%

Question 3

(1) What is the primary CGT exemption for residential property?

(2) What rate of CGT will be charged on this?

Answer 3

Private Residence Relief (PRR) + 0%

Question 4

In CGT, what 5 conditions must be satisfied in order to qualify for FULL ‘Private Residence Relief’?

Answer 4

(1) Only own 1 home
(2) No part leased (UNLESS lodger)
(3) No part used SOLEY for business use
(4) Continuous occupation
(5) Garden 0.5 hectares or less (UNLESS garden is necessary for the reasonable enjoyment of house)