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The following guide assumes you are working on a client in IRIS Personal Tax with the 2007 tax year selected.
This topic shows you how to create an asset, enter an enhancement to the asset and how to enter the final disposal.
House purchased on 1/1/1984 for £50,000
The house was extended in 1990 at a cost of £25,000
The house was sold on 1/10/2006 for £160,000.
It was owned purely for rental income purposes and therefore does not qualify for principal private residence relief.
Select Assets on the left-hand side of the screen.
Click Add at the top of the screen or select Edit | Assets | Add Asset
Enter the following information in the asset details screen.
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Asset Description |
49 Letsbey Avenue, Dorking |
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Date Acquired |
010184 |
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Amount Paid |
50000 |
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Cost of Acquisition |
700 |
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Description of Cost |
Legal fees |
You can use the <Tab> key to move between fields.
Select the 'Land or Property' asset type. An address would be required to complete the self assessment tax return, for the purposes of this guide simply enter a postcode and click OK.
Click OK or press <Return> to save the new asset.
The house will now be displayed as an asset on the right-hand side of the screen. The house should already be highlighted but if not select it and click the ENHANCE button at the top of the screen to enter details of the enhanced expenditure and enter the following details:
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Description |
Extension |
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Date |
010590 |
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Amount |
25000 |
Click ADD or press <Return> to save the enhancement. There is no limit to the number of times an asset may be enhanced.
Click CLOSE to return to main Capital Assets window.
To enter the disposal select the house then click DISPOSE along the top of the screen and enter the following disposal details:
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Disposal Date |
011006 |
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Disposal Value |
160000 |
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Incidental Cost |
4100 |
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Description of cost |
Estate agent and legal fees |
Any reliefs, such as principle private residence relief, are entered by selecting the Claim relief box.
The 'Other Details' section shows the untapered gain/ loss and taper rate. On screen calculations can be viewed by clicking the magnifying glass.
Click CLOSE to return to main Capital Assets window.
To view the capital gains computation select the 'Report' drop-down menu and select Capital Gains Computation.
To delete this example, select it and click DELETE at the top of the screen. Select Yes when asked to confirm deletion.