Can my hotel be a home?
MY WIFE and I sold our small hotel last year after 14 years, making a gross gain of £280,000. As it was our only home, how do we stand with capital gains tax?
K.U., by email. YOU need to separate out which part of the hotel was exclusively your home and which was exclusively f or business, says accountant Mike Warburton , from Grant Thornton. On c e you have attached a value from either of these, then the private residence part will not be subject to any tax. You will also need to decide how much of the game to attribute to shared areas of the hotel.
The gain f rom the business part is taxable at 18 pc above your annual exemption of £10,100 each. I HAVE an unpaid tax bill of about £5,000. I have offered to repay £50 a month, but HM Revenue & Customs says I have to pay more. Now they want me to do another self-assessment form. Is this right?
R.S., Newport. I AM afraid so. HMRC will allow you to pay an outstanding tax bill over time — called a ‘ time to pay agreement’, but it first needs to know all your incomings and outgoings.
This is why it needs a new self-assessment form. It’s likely you will have to compromise and pay more than the £50 you have offered.