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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4182
Experience:  FCCA FCMA CGMA ACIS
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Gifted a property bought in 1956 for £350 7 years before father's

Customer Question

Gifted a property bought in 1956 for £350 7 years before father's death in 1994. What value do I use as the cost of the property which was sold in 2014/15 for £125000? many thanks
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to assist you with ypur question. Could you please clarify the position. You say you gifted the property, to whom and when? Then you say you have sold in the last tax year. As you had already gifted it it was not yours to sell! You see my predicament. Reading between the lines I think you meant that you allowed your father to live in it, you did not actually give it to him. If this is correct hen did he occupy and vacate? Did yuo ever live in this property? Did you ever rent it out? Once I have a handle on all these complexities I can assist you.
Customer: replied 1 year ago.

The gift was from my father to me and he didn't live in it-

Expert:  bigduckontax replied 1 year ago.
Right, then the purchase price for you would be the current market value as at the date of gift. If this was a bequest from your father then it would be the probate value. This value as at date of gift ogtherwise may be difficult to determine exactly after all this time but the local Valuation Office Agency, part of HMRC staffed by Chartered Surveyors, may be able to assist.
Customer: replied 1 year ago.

Many thanks. As it was gifted before his death this property was not included in his assets for Estate Duty purposes. Does that make a difference to the acquisition valuation to be used?

Expert:  bigduckontax replied 1 year ago.
Yes, it does, you will need a current market value as at the date of donation. You may need help from either local estate agents or the VOA. Please be so kind as to rate me before you leave the Just Answer site.
Customer: replied 1 year ago.

Again thanks, ***** ***** to say that my father had said something about the fact that he wasn't liable for Capital Gains Tax in gifting to me- a 'roll over relief??. Again does this change matters- thanks for your patience and am impressed with your patience and swift replies

Expert:  bigduckontax replied 1 year ago.
You Father's CGT and IHT?Death Duty position is a dead duck now, so I would not worry. It would all have been settled long since.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.