CGT and PPR - lived in, inherited the other half
My client sold a property in 2011/12.
She bought the property in 2005 jointly with her father and they both lived in it 2 years. She moved out in 2007. Father carried on living there and died in 2008 at which time she received the other half. It was let for a period until sale.
I have a gain of 30K - total proceeds less half of original cost and then half of probate value. But now i'm stuck on divi-ing it between occupied periods of living in, letting relief.
How would you split the gain to do PPR etc. At first principles half of the gain would be wholly exempt under the normal "owned, lived in, let and then sold" scenario due to last three years and letting relief. And then the other half has been never lived in ie from father's death. Of course I am not saying two assets are being sold, it is just the one house.
We can't apply the last three years to the whole gain as she only lived in half of it.
I am aware of s222(7) which treats ownership as beginning when the daughter bought a share, ie her half. But it then seems a bonus that as well as getting a probate uplift she also can treat the whole property as being one that she did live in, which would then be wholly exempt after PPR, lettings, last 3 years etc.
Any thoughts please?
- Annual Tax on Enveloped Dwellings 373 7
- Late registration for MOSS 229 5
- Employee leaving mid month and Payroll Manager 345 8
- Revaluation of Brands etc 256 5
- Self employed care worker 458 10
- Client right to working papers 269 3
- Seeking advice: Paying Funeral Costs 526 6
- Sole Director Limited Company and Childcare..hat is most tax efficient way to do it? 315 4
- Professional Clearance 1,030 24
- Self Assessment statement credit balances unallocated and getting repayment 257 5
- Illegal share transfer 436 5
- Audacity 877 16
- Uk vat on supply of training services to South African Airline? 160 2
- Company Strike off 1,824 30
- Soca or not to soca 2,111 34
- How to deal with an employee's at work car parking cost, paid for by the company 383 3
- Estate admin practicalities 217 1
- Cloud Accounting Software for Practitioners 1,495 23
- Duplicate employments caused by works numbers on Sage 321 5
- Cheapest PI insurance for accountant available? 1,781 31
- NHS finance professionals 530
- VAL231 407
- Mother and son property ownership 369
- Auto Enrolment and Foreign employers 358
- Foreign Pension Contribution 331
- Fines for late submission of the RDR 304
- Employee's statement of sickness (SC2) form - no longer available as downloadable pdf 284
- vat gross profit percentage margins 268
- Pre Season Invoice dated September how do you treat the VAT as not due until May 16 255
- SWAT AML v Anti Money Laundering Compliance Plus (AMLCP) 221