Valuation of share of jointly owned property

is there any guidance on discount to be applied to the value of a jointly owned property?

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A father gifted to his son his half share of a property he jointly owned with his son as tenants in common. I need to calculate the capital gain on the transfer. I would assume that the value of his half share did not equate to half of the total value. If this is correct, what discount can I apply to reduce the value of the transferred 50% share - is there any empirical data available anywhere as  HMRC guidance appears to merely state:

"Jointly owned property -If you own property jointly with other people, work out the gain for the share that you own."

 

 

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Portia profile image
By Portia Nina Levin
14th Jan 2017 19:47

Yes. There is guidance in one of the VOA manuals. CBA to look for it though.

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Replying to Portia Nina Levin:
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By Barnet
14th Jan 2017 21:48

Looks like the answer is in 9.7 in the IHT manual and presumably valuation for CGT follows.
Thanks.

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Portia profile image
By Portia Nina Levin
15th Jan 2017 12:41

Yes the same principle applies for CGT as it does for IHT (just without the related property rules).

So basically you take your 50% value and discount it by 10%, as I recall.

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