Non-Resident CGT calculation

Costs of purchase and 5/4/2015 valuation

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Hello all.

Property acquired in 2013. Where the 5/4/2015 valuation is used as the base costs, are the cost of purchase costs ( SDLT , legal fees etc) still allowable as a  deduction?

Or ignored on the basis that the 5/4/2015 valuation is an all inclusive base cost?

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Caroline
By accountantccole
26th May 2021 10:28

Ignored - the April 2015 figure resets the valuation to the date the rules changed. Any history/improvements prior to that date become irrelevant

https://www.gov.uk/guidance/capital-gains-tax-for-non-residents-calculat...
Rebasing from 2015
For disposals of UK residential properties by non-residents where you owned the property before 6 April 2015 the standard approach for calculating the gain is to use the market value at 5 April 2015.

- Establish the value of your property as of 5 April 2015 (known as ‘rebasing’).
- Work out the difference between the value on 5 April 2015 and the value when you disposed of the property.
- Deduct any costs of improving the property (enhancement costs) incurred from 5 April 2015 and the legal cost of selling the property (incidental disposal costs).

Client should watch for foreign taxes on the disposal too

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By Paul Crowley
26th May 2021 10:47

Other buying costs ignored
Valuation is all there is

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