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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5112
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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In 1976 I was left a picture valued for probate at £3000. This

Customer Question

In 1976 I was left a picture valued for probate at £3000. This has now been sold for a nett price of £30000 My wife and I own our property jointly. What is our CGT liabilty?
Submitted: 3 years ago.
Category: Tax
Expert: replied 3 years ago.

Hello and welcome to the site. Thank you for your question.

You were left a painting (picture) in 1976. It is now been sold for a nett price of £30,000.
You should replace the probate value with a market valuation at 31 Mar 1982 to work out your gain. As this artwork is worth more than £6,000 the gain would attract CGT.

Lets assume the market value at 31 Mar 1982 was 6,000, then your gain becomes (30,000-6,000) £24,000. It is jointly owned, therefore each owner would be entitled to gains allowance of £11,000 each. This would leave the chargeable gain at (24,000-22,000) £2,000. Unless you are a higher rate tax payer, your CGT would be 2,000 x 18% = £360

I hope this is helpful and answers your question.

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Expert: replied 3 years ago.

Hello Geoffrey

I notice you have viewed my response to your question on CGT liabilty arising from sale of a picture (JACUSTOMER-1nf9ia3y- Last Viewed on 6/29/2014 at 11:15 AM).

Just checking to see if you have any issues relating to your question that I may not have addressed.

Please let me know if I can be of further assistance.

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