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?
- Grammar, spelling and silly questions 1,358 51
- Previous auditor threatening to sue our firm for unpaid fees 40 1
- Virus Alert - VERY realistic aimed at acountants 281 4
- Capital Gains PPR and allocation of costs 221 9
- Company dividends 770 27
- Warning! Cannot pay SA tax at Post Office 797 21
- White van man 958 28
- Client forgot to sign paper return and has gone on holidays 418 13
- Watch out self-assessment scam e-mail 69 3
- Charities and VAT 52 3
- How to value a business asset? 201 5
- FHL Expenses 76 2
- Has anyone experience of BPRA? 91 2
- how much to charge 147 4
- Do I pay VAT back to employer for my training?? 210 5
- FYAs on second-hand vans 135 5
- VAT Margin Schemes 99 1
- Anybody received an Employer Payment Booklet for 2015-2016? 145 4
- Investment from Friend 302 11
- VAT registration transfer 91 2
- Form MR01 (Particulars of a charge) - does this need to be filed if you remortgage with the same lender? 896
- Underpaid VAT assessment and relation to SATR 591
- Did you realise Google will not patch android exploit ... 562
- Latest phishing scam 507
- Cashback for opening business bank acct = trading income? 365
- Corporate LLP with 30 June Year end - How to record on SA800? 335
- Auto Enrolment Questions Answered 267
- Loan benefit after person ceases as director/employee 186
- Capital allowances in first basis period 169
- Sabbatical payments 166