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NRCGT - How to work out rebased cost?

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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

 

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By David Ex
19th Nov 2021 12:07

I would say your client needs a valuation by a suitably qualified person, eg, chartered surveyor.

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By r.c.accountant
19th Nov 2021 13:22

The client does not have the property anymore, and more importantly, how would a valuation now assist us in finding the MV from 2015?

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By r.c.accountant
19th Nov 2021 13:22

The client does not have the property anymore, and more importantly, how would a valuation now assist us in finding the MV from 2015?

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By Wanderer
19th Nov 2021 13:29

r.c.accountant wrote:

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.
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By David Ex
19th Nov 2021 14:11

Wanderer wrote:

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!

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By Paul Crowley
19th Nov 2021 22:09

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

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By r.c.accountant
22nd Nov 2021 07:42

Thank you!
I didn't know you could get retrospective valuations. I'll look into it

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By Wanderer
19th Nov 2021 12:13

r.c.accountant wrote:

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. 

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.
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By r.c.accountant
19th Nov 2021 13:21

I have worked out the gain the 'normal way'- it's fairly high so I do think the liability will be a lot less if they're only taxed on the gain from 2015.

What do you mean by get a valuation?
The house has been sold already at the start of November 2021.
Even if they still had the property how would a valuation now help when it's the MV from 6 years ago I need?

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By Wanderer
19th Nov 2021 13:28

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...

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By r.c.accountant
19th Nov 2021 14:06

Thank you!

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Caroline
By accountantccole
19th Nov 2021 13:35

I normally get the client to ask the estate agent that is selling it and knows the local market to give an estimate

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