14:41 PM, 30th November 2020, About A year ago 11
I am about to sell a rental property which will generate a capital gain which I will need to pay within 30 days. Can anyone advise me how to calculate my income from the property so that I can calculate what I owe bearing in mind that there are 4 months before the end of the tax year?
I am likely to complete on my property sale on 7/12/20. To calculate the CGT that I owe, the HMRC calculator requires me to input my income for the tax year 20/21 and we have 4 months to go before the end of the 20/21 tax year. I will not know my income from property until the 20/21 tax year is over.
For example, do I calculate the income at the point I make the sale? Do I use last year’s figures? Do I estimate on the basis that all rent will be paid and there are no unforeseen expenses?
I am sure that any over/underpayment will be addressed when I submit the return after April, but I would like to pay the minimum at this point. I would like to know if there is an HMRC approved method of estimating property income mid-way through a tax year.
I am wondering if I am missing something or not explaining my dilemma clearly enough. Apologies if that is the case. However, I had assumed that anyone selling a BTL property since the 30-day rule was announced would face the same issue.
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Advice and implementation provided by a practising Barrister-At-Law with £10,000,000 of Professional Indemnity InsuranceBook Now
|“Account”||means an account required to access and/or use certain areas and features of Our Site;|
|“Cookie”||means a small text file placed on your computer or device by Our Site when you visit certain parts of Our Site and/or when you use certain features of Our Site. Details of the Cookies used by Our Site are set out in section 13, below;|
|“Cookie Law”||means the relevant parts of the Privacy and Electronic Communications (EC Directive) Regulations 2003;|
|“personal data”||means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and|
|“We/Us/Our”||Means Property118 Ltd , a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.|
|Name of Cookie||Purpose||Strictly Necessary|
|JSESSIONID||Used only to collect performance data, with any identifiable data obfuscated||No|
|__cfduid||This cookie is strictly necessary for Cloudflare's security features and cannot be turned off.||Yes|
|Name of Cookie||First / Third Party||Provider||Purpose|
|__utma, __utmb, __utmc, __utmt, __utmz||First||Helps to understand how their visitors engage with our website|
|_fbp||First||Helps to understand how their visitors engage with our website|