This Query follows on from the previous one. In actual fact, it looks like the undeclared CGT bill payable 31 January 1999 should have been around £450.
Lifetime settlement was created June 1997. It was created when a fairly substantial share portfolio plus freehold property were transferred into discretionary Settlement.
Having sifted through all the paperwork it appears that a faulty holdover election was made at outset. By the way, I spoke with HMRC several months ago about this client and holdover and HMRC said they destroyed all paper records about 4-6 years ago.
The holdover election back in 1998 refers to a "transfer of securities set out on the enclosed schedule". The enclosed schedule, however, lists A) some 25 PLC companies, and then to the foot of the schedule B) the freehold property. There was an assessable gain attached to the freehold property, and it looks as if there was an intention to hold over. However, freehold property is not "securites" and so the hold over election presumably cannot cover the freehold property.
No capital gains tax was paid back then, and the due and payable date would have been 31 January 1999. Now we are well past 20 years after 5 April 1998. So it is an out of time tax year, even for fraud purposes.
But the time of the debt (due by 31.1.99) will not be out of date until two weeks' time.
Can I just forget about the matter completely. Problem is there is a 2017/18 CGT event in connection with the freehold property and I will need to declare as CGT base cost in the CGT calculation either MV of the property as it went into the Settlement (i.e. no holdover) otherwise 31.3.82 MV plus indexation (i.e. holdover occurred).
Without any clues concerning valid holdover I think I must use as base cost the MV of the property as it went into Settlement in June 1998. But by putting this on a Tax Return I am formally acknowledging (only in my head) that an ancient CGT liability has not been declared.