Capital Gain On Property

No Initial Cost Available

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Any advice here would be appreciated.

I have a client who sold the business premises in the year 15/16.  She and her husband originally purchased in 1989, he took care of all business transactions but died in 2014.  When she sold the property she received all funds, but when I set about working out the Capital Gains for her she is unable to provide me with any paperwork of the initial cost, but thinks it could be around 20/30K (big difference).  I contacted the solicitors dealing with the sale and they dont have the original land certificate which would have this information, but can provide a valuation report as of 2002 for around £45k.

So my question is, would HMRC accept an estimate of the initial cost based on the 2002 valuation?

Thanks for any advice

 

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paddle steamer
By DJKL
10th Jan 2017 15:05

Did you have land certificates in England in 1989?

I did an exercise last year for a client in similar position and arranged for a firm of solicitors I knew to arrange a search and obtain a copy of the disposition (I know, Scotland, different) I think I paid £32 (non recharge-client goodwill)

Of course it did not help, client had been gifted property from his father for nil consideration , but given your circumstance surely a back search in Registers (sasine/books of council and session) or whatever English equivalent was in 1989 should be possible?

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By Piltdown Man
10th Jan 2017 17:54

Land Registry may be able to provide a copy of the transfer document which might disclose the transfer cost if you can provide the title number. Worth a try. It's surprising how helpful they can be!

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