Javea Grapevine Issue 176 - 2015 | Page 57

Depending on the methodolgy, this house has made £92.5k, £220k or £430k Capital Gains Profit, depending on which system is used to calculate “profit”. It is important that you understand the difference this can make to the amount you will eventually have to pay. Particularly because they don’t seem to mind which of the three systems you use, as long as all the figures are consistent and you do submit one of them. The rate of Capital Gains Tax depends on your UK Income Tax level and whenther you qualify for a personal Income Tax Allowance. Roughly speaking, you can assume it is 28% if you are a higher income tax payer and 18% if you are a basic rate tax payer and that the profit you make after your annual exempt amount is deducted doesn’t push you over the threshold - it is 28% if it does. Look here https://www.gov.uk/capital-gains-tax/ work-out-your-capital-gains-tax-rate to see how this works for you - If you would like to speak to the HMRC helpdesk ring 0044 300 200 3300 and they will call you back if your query is complex.