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If a gain will be exempt, does a detailed calculation still need to be submitted?
My clients have recently moved home. Their former house was undeniably their main and only residence and I can categorically state that the capital gains tax exemption applies to the very substantial gain arising.
I take the view that the disposal may be ignored on the tax return because any gain arising would be on an asset that is wholly exempt from capital gains tax. However the tax return guidance suggests that I must compute the gain in the normal way and then claim the relief as a deduction.
As a matter of principle this seems to be wrong. However in my clients’ case HMRC’s preferred method seems to require me to go further. It suggests that I ascertain the 1982 value as well as itemise the capital elements of the clients’ expenditure in the early 1990s on an extension. There may have been many other capital...
