Will gave option to purchase at discount. CGT cost?
The former landlord of our client provided in her Will for him to have the option to purchase a property (then occupied by our client for business purposes on an informal basis) from her Estate at market value less 25%. It also provided for him to be allowed to pay for the property over a fifteen year period without interest.
Our client took up the option in April 1999 at a price of £75,000 (£100,000 less 25%). The property is now to be sold for £275,000.
Is the base cost for CGT purposes £75,000 or can we also claim that the £25,000 discount is an additional allowable cost (possibly this is the probate value of the option that merged with the actual purchase price on acquisition?). The option was not assignable.
- Is Dropbox right for your client comms? Webinar 15 May 329
- Set up a company pension 273
- RTI Fees 251
- 2011 FHL loss & ITA 2007 s74a 234
- Where's our 10%? 227
- Driving sales growth 204
- UK Property Purchase by an overseas individual in own name 201
- Cost of converting property - who pays? 198
- HMRC Enquiry Assessments 193
- EIS 192
- Regiatration of a Trust 190
- CIS late registration 189
- Accounting for gift vouchers - paid for and donated 178
- Break up basis accounting 172
- Best structure 169
- Property owned privately 163
- Membership of trade association - tax deductible? 155
- Accounts production software for business SSC 137
- Accruing for fixed asset invoice 135
- iQor recovering HMRC debts again 134