On 1 May 2019 Henry sold a property for £240,000 that he had inherited when his grandma died, for probate purposes it had been valued at £105,000. The estate agent's fees to sell the property were £12,000, the legal fees were £3,400. He had never lived in the property but rented it out. He had, however, paid £21,000 to install double glazing throughout and repaired the driveway at a cost of £2,100.

Henry had other taxable income of £65, 000 in 2020/21.

Calculate for Henry what his capital gain would be, and the tax payable on it.

What could Henry have done to reduce his capital gains tax bill ?

Answer rating: 100% (QA)

To calculate Henrys capital gain we first need to determine the propertys cost basis which is the amount Henry paid to acquire and improve the propert... View the full answer