Base value unavailable re. Capital Gain

Base value unavailable re. Capital Gain

Didn't find your answer?

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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By The Innkeeper
18th Dec 2014 10:49

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'

Thanks (1)
By The Grammar Police
18th Dec 2014 21:28

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.

Thanks (1)
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By King_Maker
19th Dec 2014 09:05

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).

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Euan's picture
By Euan MacLennan
19th Dec 2014 09:42

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

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By Manchester_man
19th Dec 2014 18:26

Thanks everyone.  I did

Thanks everyone.  I did already get an idea of value using the Nationwide historic valuation tool.  It is lower than what the client argues it was worth.

 

I would normally do a CG34 PTVC but guidance states that this must be submitted at least 2 months before the filing deadline.

 

Looks like going to have to enter a reasonable estimate and tick the box stating estimated valuation used.  I assume this will automatically trigger a s.9A enquiry.

 

Thanks Euan, the other owners are the Mother and Sister and he no longer speaks to the sister!

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By Manchester_man
21st Dec 2014 21:56

Re the above, does anyone know for certain that ticking the 'estimated valuations used' box will automatically trigger an enquiry notice?

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By pawncob
22nd Dec 2014 10:06

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.

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