CGT uplift on Death

How to enter this online under CT reporting

Didn't find your answer?

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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By Tax Dragon
27th Oct 2021 12:08

This is a software question, not a tax one, right?

What software?

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By taxwizard
27th Oct 2021 13:24

Sorry typo should be CGT and should have specified HMRC Capital Gains Tax Reporting under my agent login

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By Jo Nokes
27th Oct 2021 13:48

Surely you just enter one cost figure, which is made up of the two elements that you have identified

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Replying to Jo Nokes:
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By taxwizard
27th Oct 2021 15:39

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 .

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Replying to taxwizard:
RLI
By lionofludesch
27th Oct 2021 18:35

taxwizard wrote:

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.

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Replying to lionofludesch:
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By More unearned luck
27th Oct 2021 18:50

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.

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Replying to lionofludesch:
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By More unearned luck
27th Oct 2021 18:50

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.

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Replying to lionofludesch:
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By More unearned luck
27th Oct 2021 18:50

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.

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Replying to More unearned luck:
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By More unearned luck
27th Oct 2021 19:04

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.

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Replying to More unearned luck:
RLI
By lionofludesch
27th Oct 2021 19:26

More unearned luck wrote:

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.

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By Paul Crowley
27th Oct 2021 14:13

One sale
Two costs
Half of original costs
Then probate value of the second half acquired through the will

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By SteveHa
28th Oct 2021 13:40

Why do you refer to CT Reporting? Or is that a typo?

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Replying to SteveHa:
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By lionofludesch
28th Oct 2021 13:52

SteveHa wrote:

Why do you refer to CT Reporting? Or is that a typo?

He said so in post 2 of the thread.

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Replying to lionofludesch:
By SteveHa
28th Oct 2021 15:22

Oops :(

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