CGT incidental expenses

CGT incidental expenses

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Client has sold inherited property. Am I correct in deducting as an allowable cost for the eventual CGT computation a proportion of the ‘cost of establishing title’ based on CG30570, please?

This states (for the size of this estate) 0.8 per cent of the probate value of the assets sold.

What if the solicitors charges were less than this?

Replies (6)

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By FactChecker
02nd Feb 2024 11:47

Sorry. Are you asking whether you would be ...
"correct in deducting as an allowable cost for the eventual CGT computation an (amount for) .. the ‘cost of establishing title’" greater than the actual cost incurred?

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By More unearned luck
02nd Feb 2024 12:23

Depends on who your client is.

If your client is the estate then, yes (CIR v Richard's Executors 46TC626).
If your client is the legatee then no (because he/she hasn't incurred the cost of obtaining probate).

I don't think that it matters that the actual cost is less than the scale. SP2/04 says "The Commissioners for Her Majesty’s Revenue and Customs will accept computations based either on this scale or on the actual allowable expenditure incurred." Words such as 'the lower of' aren't included.

But if your conscience [***] you as it does FactChecker, and if relevant then ask the solicitors how much of their charges relate to the establishing of title.

I assume that you meant 'in' the eventual CGT computations. Why 'eventual'. If tax is due eventual doesn't seem to be an appropriate word.

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Replying to More unearned luck:
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By More unearned luck
02nd Feb 2024 12:28

Apparently a word that means to pierce slightly is rude full stop regardless of context. Whoever designed the censor software is a [***].

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Replying to More unearned luck:
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By Tax Dragon
02nd Feb 2024 12:52

That made me laugh.

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By Tax Dragon
02nd Feb 2024 12:54

OP, how have you seen CG30570 and not read CG30550?

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By CBPTS
02nd Feb 2024 13:58

In reply to FactChecker, yes I was asking that as well. But now thanks to More unearned luck and Tax Dragon see the error of my ways and that the legatee can not claim this as a deduction.

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