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NRCGT, calculation of cost

Property part acquired before April 2015, part after

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I have a client who needs to file an NRCGT return but am not clear on how to calculate the liability.

Facts are;

- residential property acquired jointly by H&W in 2010, both UK resident at the time.

- H went non-res on 6 April 2015.

- W has remained UK resident. They are not separated.

- W gifted her half of the property to H during 2015/16. H inherits original base cost.

- Property sold in 2021 for a significant gain over the 2010 value, but less than the 2015 value.

How should the gain be calculated? Can we consider there to be two acquisitions and calculate the base cost for each 'half' using the most beneficial method?

I.e. can we claim rebasing on the half that H owned throughout, and use a standard CGT comp for the half that was transferred in 15/16?

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By Matrix
23rd Feb 2021 16:00

Why wouldn’t you use the April 2015 value for the whole property?

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By IslingtonAccountant
23rd Feb 2021 16:16

50% of the property was owned by W at 5/6 April 2015. She has always been UK resident, so no rebasing on that 50%.

Is our thinking.

My may have an answer however, TCGA1992 s36a Sch 4AA Para 22(2) seems to say that you use the first acquisition date for the whole disposal - which would allow rebasing of the whole property.

I just need to read through and check that!

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