Hope someone can help as first time I have come across this scenerio.
Client owned rental property in tenants in common with husband. Husband died in Feb 2021 and property sold October 2021. The Will stated share of husband estate passed to wife
The base cost for the wife will be 50% of the purchase price plus the husband uplift cost which will be virtually 50% of the sale price.
How is the uplift entered when reporting for CGT
Thank You
Replies (14)
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Surely you just enter one cost figure, which is made up of the two elements that you have identified
Yes but CGT reporting tool just mentions the cost of purchase and date of purchase. The property was purchased in 1986 so was little concerned HMRC may pick this up as the value would be much higher than expected and wonder why actual CGT amount is so low .
Date of acquistion is the date of death, surely.
No; it's the 1986 date. It's one asset. The fact that the client has subsequently increased her share of ownership doesn't alter the fact that it was first acquired in 1986.
No; it's the 1986 date. It's one asset. The fact that the client has subsequently increased her share of ownership doesn't alter the fact that it was first acquired in 1986.
No; it's the 1986 date. It's one asset. The fact that the client has subsequently increased her share of ownership doesn't alter the fact that it was first acquired in 1986.
The CGT return is a mess. It asks for far too many details and does so sometimes using odd unhelpful wording as the OP has discovered. Since many disposals are made jointly the typing exercise is doubled. Why it asks for more numbers to be entered than does the SA is a mystery to me. It should have one box for the gain and a second for the tax due. All other data HMRC can see from the comp that is uploaded to it. It is also odd that it requires vouchers to be uploaded (but limits the maximum docs to two) when no evidence needs to be filed with the SA return.
No; it's the 1986 date. It's one asset. The fact that the client has subsequently increased her share of ownership doesn't alter the fact that it was first acquired in 1986.
Ah - gotcha.
I'd put the 1986 date on the form and white space the detail. The form's only adequate for the most straightforward of cases.
One sale
Two costs
Half of original costs
Then probate value of the second half acquired through the will