Accounting and Taxation: Capital Gain Tax and Applicable Relief

Accounting

TABLE OF CONTENTS
INRODUCTION........................................................................................................................3
1. Capital gain tax..................................................................................................................3
2. Applicable relief.................................................................................................................5
3..............................................................................................................................................6
4..............................................................................................................................................7
5..............................................................................................................................................8
CONCLUSION..........................................................................................................................8
REFERENCES...........................................................................................................................9

INRODUCTION
This entire report states about accounting and taxation. This file states about the Bridget
Bardot who is a UK resident and tax payer. The entire report focuses on the tax of the house.
Apart from this, capital gain tax is being described in this report. Capital gain tax is a tax
which occurred when any person sell the investment, on such investment they have to pay
capital gain tax. This report states about the different kind of Tax which levied on property in
UK. Besides this various tax relief which is applicable on the sale of property is mentioned
in this report.
1. Capital gain tax
House property tax provision on Property in UK
Stamp duty land tax
In UK people have to pay stamp duty tax which was introduced in 2003 and revised
on 2014 and 2015. As per this tax 0% tax levied on £250000 and 2% between £125001to
£250000. Apart from this 5% tax will be apply on £2500001 to £9250000. 10% will be
applicable between £925001 to £1500000. 12% will be charge over £1500001. So as per the
lows Bridget have to pay stamp duty tax as well if they are using the property.
 1 New windows price = £3120 in the year 2002
Index price of 2002 is 105 which is a base year
Index price of 2021 is 301 which is a present year
= 3120*301/105= £8944
So 8944 will be the present price of new windows.
 Driveway = 6400 in 2004
Index price of 2004 = 109
Index price of 2021 is 301
= 6400*301/109= £17673.33
 New bathroom = 2500
Index price of 2009 = 137
Index price of 2021 is 301
= 2500*301/137= 5492.70
Rear extension= £60000
Index price of 2010= 148
Index price of 2021 is 301
=60000*301*/148=122027.02
 Architect fees and planning consent =8000