Hi I am non resident and using 3rd part software to submit my self assessment
The software generates SA302 Calculation.
I have a small income from let property, minus my personal allowance my total income is ZERO and Tax due is ZERO.
In the SA302 it shows "Tax which would otherwise be chargeable on non-disregarded income £506.40" I don't know where this figure comes from and what it means, I have asked the 3rd party software and they say its HMRC's calculation and its correct but couldn't really tell me what it is, Is it possibly the tax I would have paid if I wasn't using my personal allowance?
*** My income after expenses is only around 6,000 per year,
So even ignoring residential property finance relief I will only have used around 50% of my personal allowance, if take of residential property finance first also then my taxable income will be around 3,000 so even more of my personal allowance is unused
I am using HMRC online calculator - Calculate your Non-Resident Capital Gains Tax
What was your total UK income in the tax year when you stopped owning the property? - using the advice given above I put ZERO.
What was your UK Personal Allowance in the tax year when you stopped owning the property? I put 12,570
Is it assuming then I used all my personal allowance? (I haven't).
It hasn't asked me how much of my personal allowance is left or what other reliefs I am using.
As I said asked earlier and you said it was correct, I took my rent income (my only income), minus personal allowance, minus Residential property finance cost relief, which results in a negative figure so I put Zero as my income.
I had been using my income before taking off my Personal Allowance and Residential property finance cost relief,
Just another Q about the rates.
I understand that the CGT rate on property is charged on the gain depending on your income band,
18% for basic rate tax payers and 28% for higher rate tax payers.
The basic rate band is for earnings to 50,270, I have no other income in the tax year (from what we discussed in my earlier messages).
But I noticed it looks like if the CGT taxable gain is under 37,700 then I am charged at basic tax payer rate 18%, but for the proportion of the gain over 37,700 I am charged higher rate of 28%.
Shouldn't the first 50,270 be charged at 18% rate? (looks like the 37,700 is the 50,270 limit minus personal allowance 12,570).
I don't understand why this is the case, I must be misunderstanding something?
Just to add I have since found this https://www.gov.uk/capital-gains-tax/rates, which says...
"Work out how much taxable income you have - this is your income minus your Personal Allowance and any other Income Tax reliefs you’re entitled to."
So if I understand this right for my case, it would be Box 40 (taxable income), minus personal allowance, minus Box 44 (Residential property finance cost relief)
That would be a negative amount for me, so my income for the NR CGT calculation would be Zero, is that right?
Hello, I have a question about the NR CGT online calculator.
It asks 'What was your total UK income in the tax year when you stopped owning the property?'
My only source of income is/was the rent, What is the income figure they need?
I am looking at SA105 Property pages of the Tax return,
Box 40 Taxable profit for the year
Box 44 Residential property finance cost
Is my income that I need to show on the NRCGT calculation the figure in Box 40, or Box40 minus Box 44 (which is the actual amount I pay tax on)?