Client was gifted a 1/3 share in a rental property (residential) 15 years ago by a relative. Now property has been sold. Base cost = MV at date of gift. Presumably the giftor would have had a capital gain and the disposal value is our base cost, BUT, the relative now has dementia and has no recollection. Property sold in July 2013 for 250,000.
I believe the options available are:-
1. Put an estimated value in the return and request a post transaction value check.
2. Get an independant valuer
3. Work out a reasonable estimate and tick the estimated valuation box on the return and hope for the best
Am I missing anything? Also, what would fellow members do?
Kind regards
Replies (7)
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try
zoopla. Nationwide and Halifax have valuation tools as well on their websites. If you use one of these for the value make sure you advise HMRC in 'white space'
Whatever you do, it'll come down to negotiations with the D.V.
I'd use the best (and most beneficial) estimate and see what happens.
If the CGT is significant, I always recommend obtaining a MV report from a professional Valuer (who is prepared & competent to negotiate with the DV).
Two more suggestions
Ask the estate agent who sold the property to give you an estimate of the value 15 years agoIf the client had only a 1/3rd share, someone else held the other 2/3rds. Unless it was the relative with dementia who kept the 2/3rds, ask the owner(s) of the 2/3rds what they are doing about it - they might already know or have obtained the value
Luck of the draw
I've ticked it for share valuations and had a response, but for some land sales they don't seem to bother. Perhaps the DV just can't be bothered.