House purchase costs for Capitol Gains Calcs

All records of purchasing costs lost

Didn't find your answer?

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)

Please login or register to join the discussion.

avatar
By Paul Crowley
03rd Feb 2022 13:42

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

Thanks (0)
avatar
By CJaneH
03rd Feb 2022 14:12

You can confirm the cost by spending £3.00 with the land registry. Will not help determine the fees and disbursement.

Thanks (0)
avatar
By dfoss
03rd Feb 2022 15:12

Ok - thanks people.
I know the Purchase price from the Registered Title.
I found historic stamp duty rates on line from which I can calculate 1% of £108k - £60k = £480
So I now need to track down typical Solicitor's and Surveyor's cost for that period to firm up a defensible estimate.
Is it OK to use an estimate like this to complete the HMRC Capital Gains Tax worksheet?

Thanks (0)
Replying to dfoss:
avatar
By Cat's whiskers
03rd Feb 2022 15:40

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.

Thanks (0)
avatar
By dfoss
03rd Feb 2022 16:58

I don't know - can anyone here tell me? - I had just assumed the first £60k was 0% - is that wrong? - if so that's £1080 on the £108K

Thanks (0)
Replying to dfoss:
avatar
By Paul Crowley
03rd Feb 2022 17:30

That is why I suggested let the solicitors do the calculation

Unless you are also your daughter's conveyancer as well as tax agent

Thanks (0)
Replying to Paul Crowley:
avatar
By dfoss
03rd Feb 2022 18:25

Well - quite clearly I do not profess to be my Daughter's conveyaner - just a supportive Dad trying to wade through this excersise - hopefully with help from his website to get an overall picture of impending costs. This website has been incredibly supportive in the past

Thanks (0)
Scooby
By gainsborough
03rd Feb 2022 17:15

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?

Thanks (0)
Replying to gainsborough:
avatar
By Tax Dragon
04th Feb 2022 10:06

That sounds odd. SDLT came in in 2003 and I thought always had progressive bands. Did you perhaps buy in 1994? :-p

Thanks (0)
Replying to Tax Dragon:
avatar
By Wanderer
04th Feb 2022 10:20

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...

Thanks (1)
Replying to Wanderer:
avatar
By Tax Dragon
04th Feb 2022 10:30

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.

Thanks (1)
avatar
By dfoss
03rd Feb 2022 17:25

Yes - because we only have about 2 years residence - the next 18 years were rented out

Thanks (0)
avatar
By dfoss
04th Feb 2022 12:43

Thanks Wanderer- that is actually better for us '
cos it's more to set off against the gain

Thanks (0)
Replying to dfoss:
avatar
By Wanderer
04th Feb 2022 12:53

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...

Thanks (1)