The valuation on probate was £80,000
So the gain is 290K - 80K = 210K @ 177/233 = say 160K; deduct 11K (AEA) and 40K Lettings Relief (40K) = 51K, gain 109K. Tax at 18%, 3.7K; at 28% 25K, total tax say 29K tax to pay. Not far out from my original guess!
Thank you for your excellent support.
I realise that I may need to pay you some more! But the purchaser of the 0.5acre plot wants to use his father to pay £40k for part of the garden (notifying Land Registry) so that he only needs a mortgage for £249,950 - is this okay? and do I wait until next tax year for the £40k and benefit from lower CGT or do everything this tax year?
I understand what you have written, thank you, ***** ***** leaves unanswered whether it is preferable to complete the £40k part of the transaction at the same time as the £249.950 exchange of contracts this tax year, or to wait until the 2015/6 tax year if it gives a lower total CGT overall - the latter choice could be a problem as it was never valued at the time of probate as 2 components? If this second option is risky, then I will ask for option 1.