Wife sold a letting property in 2019-20 and now needs to calculate the CGT on it.
She jointly bought this house with husband 20 years ago and inherited the remaining 50% on his death a couple of years ago.
When calculating the gain on her tax return (in simple terms) would it be either:
1 - Sale proceeds less original purchase costs or;
2 - Sale proceeds less (50% of original cost + 50% of probate value).
thanks!
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Replies (9)
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Do you think the correct calculation is option 1 or 2?
The gain is much less under option 2.
There were some improvements made in 2008 of around £10k
Thanks
Please can you remove the large text and colour in your question since it is hard to read.
I vote 2) and only use 50% of the improvements.
Are you her accountant?
thanks, I've tried to change font but not sure how.
not her accountant just a friend, can't get through to helpline so thought I'd try on here
I was leaning towards 2 but wanted to check
Version 2
Wife got the 1/2 a couple of years ago
Agree, 1/2 improvements
the other half included in probate value
I'm sure you've checked this but is it eligible to claim Entrepreneurs Relief ??
It's not answering your question but I thought I'd ask anyway
Thanks
Yes I think that can claimed as it was a furnished holiday let and I believe individuals can use the relief ??
