I have a non-resident client who recently disposed of a residential property in London.
They owned the property since 2003, but I understand instead of using the purchase price, I need to calculate the gain based on the 're-based' value at 05th April 2015.
The client doesn't know.. They were living in the property from 2004 to 2013 and then rented it out, but they've never had a valuation done. (Does this mean they wouldn't qualify for PPR relief as they haven't lived in the property since before 2015?)
What would be the most HMRC-approved appropriate way to find the MV at 2015? I have an estimate but I've based it on the 2021 sales proceeds and from looking on RightMove at similar properties in the area sold in and around 2015.
Thanks in advance for your help
Replies (12)
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I would say your client needs a valuation by a suitably qualified person, eg, chartered surveyor.
You get a valuation of what it was worth in 2015, not what it is worth now.The client does not have the property anymore, and more importantly, how would a valuation now assist us in finding the MV from 2015?
You get a valuation of what it was worth in 2015, not what it is worth now.
Yup! Thought that was obvious from my answer but apparently not!
Surveyors know what they are doing
He can look from outside and read the Estate agent's advertising either on purchase or sale
Dead easy
So for the sake of a cheap fee just get it done and compare the results
When given a choice pick the cheapest
You don't 'have' to do it this way. Do it the 'normal' way first to see if it is worth considering getting a valuation.They owned the property since 2003, but I understand instead of using the purchase price, I need to calculate the gain based on the 're-based' value at 05th April 2015.
Sorry, my response was confusing when I said the 'normal' way.
You can time apportion the gain to work out the pre & post April 2015 element.
You also get the last 9 months.
The calculator here may assist you:-
https://www.gov.uk/guidance/capital-gains-tax-for-non-residents-uk-resid...
I normally get the client to ask the estate agent that is selling it and knows the local market to give an estimate