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Thanks for your answer I will have to go through my records to check the months the house was let. I do not have a valuation at 2004 will HMRC accept figures of passed sales of similar houses in the same street which I can check out on net house prices web site? How does LR work?
The most important thing is we are trying to limit the amount of CGT our daughter has to pay and would prefer the CGT to by paid by us.
Yes Sue, usually this is acceptable as a means of assessing value. Actually they may bring into play the Valuation Office Agency, part of HMRC, which is mainly responsible for setting levels for council tax and business rates and they would use the same system as they have details of all landed property transactions.
You daughter has no CGT liability in any event. The house was in her name whilst she was in occupation and thus she would be entitled to Private Residence Relief which relieves CGT at 100%. She gave it to you more than seven years ago so that Potentially Exempt Transfer (PET) for Inheritance Tax purposes in her estate has gone and the PET extinct. The same applies to your original purchase of the house for her when you put it in her name.
The only people laible to CGT are you and I have explained the system.
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Sorry I have not got back to you sooner I have been tied up and not able to check my email. Thank you for being so patient with me.
One last question, the house is in mine name at the moment, would it be tax efficient to change from single to joint ownership with my husband.
It would have been had you done this when your daughter gifted the house to you. The pair of you would have each had a half gain, both would have AEA so the ultimate CGT bill would have been lower.
Switching now will merely cost you conveyancing fees.
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Thanks very much for such a prompt reply. I have been very pleased with your information and will rate you excellent.
Thank you for your excellent support.