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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4428
Experience:  FCCA FCMA CGMA ACIS
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I inherited part of a lease on some land in Wandsworth South

Customer Question

I inherited part of a lease on some land in Wandsworth South London in 2011. This lease was sold in 2015. For capital gains tax l need to know how much it has increased in value from 2006 when it was valued at £75,000.00 ( part share) to 2011 when l inherited. How do l go about this, please help
Marilyn Hutchcroft
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello Marilyn, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Your exposure to Capital Gains tax (CGT) stems from the gain between the 2011 value, which would be the probate value and the net selling price in 2015. The 2006 value is irrelevant. That is the general principle, but in the case of leases the rules are exceedingly complex depending upon the type of lease, long or short. I do hope that i have been of some use so far.
Customer: replied 1 year ago.
When l inherited in 2011 from my mother-in-law we didn't go to probate as she was in a residential home which we were paying for as she had used all her savings, we forgot about the lease on the yard. When l wrote to the capital gains tax department they replied that l would have to pay 18% or 28% depending on my tax bracket on the value gain from 2011 to
2015 when it was sold. How do l find out the appreciation.
Expert:  bigduckontax replied 1 year ago.
I would suggest that you approach the Valuation Office Agency (VOA). The VOA is a little known part of HMRC staffed by Chartered Surveyors. Their main function is banding for Council Tax and setting rateable values for business rates, but the Agecy is notified of the consideration passed in any transaction involving landed property so they have a comprehensive knowledge of current and historic values. They should be in the phone book. Your exposure to CGT would be the gain less your Annual Exempt Amount (AEA) of 11.1K and would be taxed at 18% or 28% or a combination of the two rates depending on your income including the gain in the tax year of disposal. I do hope that you have found my reply of assistance.