Capital gain with no idea of purchase price

Capital gain with no idea of purchase price

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Client has sold a piece of land for a substantial sum (£500k) and has no record of the purchase.  They believe it was around £55k in the early 1980s.  Solicitor has no record and has been unable to get anything from land registry.  What is the best approach here?  Is it simply a case of writing to HMRC's valuation office and agreeing an allowable cost with them? 

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By Rammstein
18th Jun 2014 15:48

March 1982

When you say early 80's, do you mean before March 1982?  If so, you can get a valuation for March 1982 and use that.

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By The Innkeeper
18th Jun 2014 15:49

is this

client an individual or a ltd co

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By anewbie81
18th Jun 2014 16:06

client is a social club so taxed as an organisation.  Client does not have exact date but thinks 1983.  Will the valuations office provide a March 82 value?  Is so, Iam sure we could negotiate an appropriate value from there.

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By Paul Soper
18th Jun 2014 16:12

Problem time

You can't get a 1982 value unless you owned it in 1982.

Given that the client is sooo vague why not suggest they misremembered, call the acquisition February 1982 and get a March 1982 value.  It is quite unlikely that there will have been a shift in value between 1982 and 1983 to make any significant difference to the cost and the amount of the liability. Use form CG34 to initiate the valuation process.

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paddle steamer
By DJKL
18th Jun 2014 16:17

English Conveyancing?????

 

I cannot understand how this could arise, if a property is to be sold in Scotland either you need:

1. The various dispositions showing chain of ownership, these would give the consideration and would be able to be obtained from the register.

2. If more recent conveyancing then Land Cert, but to have received the Land Cert the chain of title would have required to be demonstrated and again ought to be available.

If these are not there how has client persuaded the purchaser's solicitor to get his client to pay £500,000 when there appears to be no no clear title? Does purchasing solicitor have PI or are/were things really that different in England  !!!!

 

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By Paul Soper
18th Jun 2014 16:35

Really that different...

If only we were allowed to become Scottish....

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Replying to Cheshire:
paddle steamer
By DJKL
18th Jun 2014 16:41

It has its downsides

Paulsoper wrote:

If only we were allowed to become Scottish....

It has its downsides, during World Cups I have to dust of the fact that my Father was English for the duration, becoming an honorary Englishman until they get sent home. On the plus side my Scottish half has plenty of experience dealing with sporting disappointment !!!!

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By bernard michael
19th Jun 2014 09:06

Can anyone remember who they bought it from and see if they or their solicitors have records?

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By johngroganjga
19th Jun 2014 09:38

I am no property lawyer...

But I don't understand why this information is not on the title deeds, or at the Land Registry. I thought all land was registered these days - but perhaps this is one of the remaining plots of unregistered land.

I also share the bafflement already expressed that the client could sell land for £500,000 without apparently being able to prove his title.  All in all it beggars belief and suggests the client and his conveyancing solicitor have not been asked the right questions. 

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