CGT on disposal of rental property

dmos87

Registered User
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412
Folks,

First time disposing of an investment property and facing CGT. I've used Revenues website to calculate this, please can someone tell me if I'm going wrong.

Sale Price(incl all contents & furnishings) 125,000
Original Purchase Price 81,000 (purchased in 2015)
Difference = 44,000
Less Personal exemption:1,270
CGT Income: 42,730 of which 14,243.33 is 33%

Other allowable deductions
- Solicitors Fee to purchase in 2015: 3,026.50
- Solicitors Fee to dispose: estimating 4,000 at the moment
- Auctioneers fee: estimating 2,500 at the moment
- Enhancement Expenditure: 4,643.84
(The property was a bank sale in 2015, and had no kitchen equipment or storage. The majority of the Enhancement Expenditure went on the Kitchen Carpentry, materials and appliances, all of which are included in the sale price). The remaining was for other Enhancements (Flooring and skirting boards, heater in bathroom, new shower unit and sink).
Total allowable deductions as above: 14,170.34

14,243.33 - 14,170.34 = 72.99

Have I done this right? Is the CGT really only 72.99 (yes, I know two figures are estimates but if they were correct)? I had honestly thought all along it would be more than this, can someone confirm?
 
No, you need to make the deductions first, and then calculate 33% of the 'gain'.

So (44,000 - 14,170)*33%
Then take personal exemption off the result
 
No, you need to make the deductions first, and then calculate 33% of the 'gain'.

So (44,000 - 14,170)*33%
Then take personal exemption off the result

If this is right, then I prefer my way of calculating it :L

Thanks RedOnion, I knew something was off!
 
Personal exemption comes off the gain before calculating the tax:

(44,000-14,170-1,270) x 33%

Did you pay stamp duty when you bought the house?
 
If you are a couple there would be a double exemption. Stamp duty can be deducted as a cost. Have you any unused loses to offset.

I'm surprised at the solicitors fee for disposal.
 
I think the sales proceeds value does not include the value attributable to furnishings but will check this. I seem to remember reading this in the context of disposals of a Principal Private Residence calculation (not the same as what's being disposed of here as it's an investment property).
 
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