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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13914
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I bought a house with 2 cottages in the grounds in 1983. I

Customer Question

I bought a house with 2 cottages in the grounds in 1983. I sold the house and one cottage in 2005, kept the second cottage and bought a new house. I paid capital gains in 2005 on the house and the sold cottage. The second cottage has since been let and/or empty. I am now selling it. How on earth can I calculate any capital gains when it was acqired as part of an estate, with no specific value apportioned to it, and I have owned it for 32 years?
I am a retired pensioner receiving well under the income tax threshold, have spent thousands upgrading the cottage over the years and have always paid income tax on any rent from the cottage.
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question - I am Sam and I am one of the UK tax experts here on Just Answer.
I would imagine that you have
1) Details of the total acquisition price from 1983
2) the amount of the acquisition costs considered against the cottage sale in 2005
Which allows you to then establish the value to use to deduct as the acquisition cost from 1983 against the soon to be sale value.
In essence what value did you use to work out the gain when the first cottage was sold
Capital improvements you have spent on the cottage will be allowable as a deduction against any gain, as will a proportion of the costs to buy and all the costs to sell.
Let me know if I can be of any furtehr assistance
Thanks
Sam