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bigduckontax, Accountant
Category: Tax
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I own 50% of a flat in Harrogate. The other 50% is owned by

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I own 50% of a flat in Harrogate. The other 50% is owned by my grand daughter after it was bequeathed to her by my wife, from whom I was separated. My wife was living in the flat as her main home, but I allowed her to live there without any rental payment to me until her death in February this year. Prior to my wife living there (for 5 years), my son lived there, rent free - prior to that my mother lived there from 1994, when she purchased it, until her death in 1998 when she bequeathed it to me and my wife.
The land registry have no record of the probate. What is my position with regard to capitol gains tax? Firstly, am I liable for capitol gains tax and secondly, if I am, how is it calculated if I've no valuation at the time of my mothers death in 1998? I estimate that the flat is currently valued at circa £200000 if sold as a whole. However, the resale value of my 50% is perhaps open to questioning! I would like to sell my 50% to my daughter.
Submitted: 12 months ago.
Category: Tax
Expert:  bigduckontax replied 12 months ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. My Mother always told me that Harrogate was the coldest place in England! Firstly you are going to the wrong place for values. The people to contact are the local Valuation Office Agency (VOA), part of HMRC staffed by Chartered Surveyors. Their primary function is the setting of Council Tax Bands and rateable values for business rates. However, in addition they are notified of every landed property transaction and thus have a comprehensive data base of values. Assuming that thus flat is not your sole or main domestic residence, then your transfer to your daughter would trigger a CGT liability based on the gain from the probate valuation [try the VOA] to the current market value as at transfer. As it is jointly owned with your wife the liability is half the gain each. This is taxable at 18% or 28% or a combination of the two rates depending on your income including the gain in the tax year of transfer. You are both entitled to an Annual Exempt Amount (AEA) of 11.1K to offset this gain. I do hope that I have shown you a way forward in this matter.
Customer: replied 12 months ago.
Providing the VOA can give me the information I require, your service and answer has been spot on. However, just one question please. When you say 'then your transfer to your daughter would trigger a CGT liability based on the gain from the probate valuation [try the VOA] to the current market value as at transfer'. By value at probate valuation, presumably you mean the probate valuation at the time of my mother death in 1998.
Expert:  bigduckontax replied 12 months ago.
Correct, when she bequeathed it to you.
Customer: replied 12 months ago.
Keith - great service. Nothing more required, but if I need further help I'll certainly be in touch.Mike
Expert:  bigduckontax replied 12 months ago.
Please be so kind as to rate me before you leave the Just Answer site, Mike. If you want me again just preface your question with 'ForCustomeramp;#39;
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3360
Experience: FCCA FCMA CGMA ACIS
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Expert:  bigduckontax replied 12 months ago.
Thank you for your support.

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