I am in the process of helping my Daughter (who has mental health problems) dispose of her house. I have been her agent for self assessment for 18 years during most of which time it has been rented out.
My question is concerning a Capital Gains tax allowance for the purchasing costs of her house in 2002 – I have been unable to find any records of her actual costs but it was a straightforward purchase of a freehold property for £108K.
Would it be reasonable to put in an estimate on the Capital Gains Tax calculation for legal, survey etc costs?
What would look like a conservative and defensible estimate?
From memory she believes it was circa £1500 in total – but I have no idea if that is realistic.
Replies (14)
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All you can do is be reasonable
Solicitors will know what the purchase price was and should be able to calculate stamp duty
Could even look up their own records to guess what they would have charged for similar priced house back then
You can confirm the cost by spending £3.00 with the land registry. Will not help determine the fees and disbursement.
Are you sure that stamp duty wasn't payable on the full amount? I know the rules changed but not sure when. I think in 2002 it was on the full amount.
That is why I suggested let the solicitors do the calculation
Unless you are also your daughter's conveyancer as well as tax agent
I paid 1% on the full amount when I bought my old flat in 2004.
OP - is there actually going to be a gain when main residence relief is taken into account?
That sounds odd. SDLT came in in 2003 and I thought always had progressive bands. Did you perhaps buy in 1994? :-p
Are you sure?
To 03/12/2014:-
Stamp Duty Land Tax (SDLT) rate is charged on the whole amount of the consideration.
https://www.gov.uk/government/publications/rates-and-allowances-stamp-du...
From then:-
The Stamp Duty Land Tax rate is charged on increasing portions of the property price.
https://www.gov.uk/government/publications/rates-and-allowances-stamp-du...
Of course I'm not sure. You have to be very young to be sure of anything these days. They say dragons live for ever, but some of my scales are starting to look like the polish is coming off.
Make sure you sue the Stamp Duty Rates (not Stamp Duty Land Tax) for a 2002 acquisition:-
https://www.gov.uk/guidance/stamp-duty-rates-on-land-transfers-before-de...