Mrs B had owned a buy-to-let property for several years and decided to sell when the property market improved. While she expected there would be Capital Gains Tax (CGT) to pay, she was unsure how the gain should be calculated or what HMRC reporting obligations applied.
Like many landlords, Mrs B assumed the gain would simply be the sale proceeds less the original purchase price. However, once the records were reviewed, additional factors needed to be considered, including legal fees, estate agent commission, and enhancements incurred during ownership.
She was also unaware of the 60-day reporting requirement for UK residential property sales, which can result in penalties and interest if missed.
Mrs B wanted to ensure the position was reported correctly and that all allowable deductions were claimed.
We reviewed the full ownership history and prepared the CGT calculation, including checking the treatment of improvement costs and identifying allowable deductions.
Once the figures were finalised, we prepared and submitted the 60-day CGT return and ensured the disposal was correctly reflected on her Self-Assessment return.
Mrs B understood exactly what tax was due and had the position reported on time, without any last-minute pressure following completion.
The calculation was fully supported with records and workings, giving her peace of mind that the disposal had been dealt with correctly and in line with HMRC requirements.
Mrs B avoided missing the 60-day deadline, claimed all appropriate deductions, and had confidence that she had paid the correct amount of tax, and no more than necessary.
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