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Sam, Accountant
Category: Tax
Satisfied Customers: 14152
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I sent a question about the sale of a barn/steading in Aberdeenshire

This answer was rated:

I sent a question about the sale of a barn/steading in Aberdeenshire a few minutes age .... to Sam and accompanied with my Mastercard details. By mistake and stupidly I pressed the delete button before completing my request !!I'm wondering if Sam is still there !!!
William *****@******.***
I am still here but your question does not seem to have appeared yet, could you advise what the question was
Customer: replied 3 years ago.

Sorry about my inefficiency ! My question is : My wife died in 2004, leaving me her quarter share in farmland with an old steading/barn. Her share was valued at£28000., the other shares being held by her brother and sister. Later we decided to sell the steading as a private house but before selling it we were involved in expenses -water supply, access road,, legal fees, planning permission etc - amounting to £100000 ,my quarter share of costs being £25000.

The property has now been sold... and my quarter share of the purchase price after expenses is £48000.

I have spoken informally to my accountant but would value your independent opinion regarding Capital Gains Tax payable by me. Thank you help.

Thanks response and the additional information.
Yes you will have a capital gains as there has been a disposal of this asset, which has never been your main residence.
Can you clarify that
1) The 1/4 share value at the time you inherited was £28000
2) The quarter value share of the expenses were £25000
3) the sale value after selling costs (so not including the expenses at 2) or the value price at 1) were £48,000
So we have sale price less costs £48,000
Less inherited value and costs to better sale position £53,000
So loss of £5000?
If this is the case and you have made a loss of £5000 you still need to inform HMRC of this loss, which you can use against any future gains you may make.
if you had £48,000 left over after all the costs and value at the time of Inheritance, then there will be a charge of capital gains, with the first £11,000 exempt as this is your annual exemption allowance and the remaining £37,000 liable to 18% or 28% or a mix of both - this will be determine by your usual annual income - and what basic rate band there remains unused.
So if your annual income is in excess of £41865 - then the gain will be charged at 28% , if you annual income was £30,000 then the first £11,865 at 18% and ay remaining gain at 28%.
let me know if you require any clarification on the above, but it would be appreciated, if in the meantime you could rate the level of service I have provided (or click accept)
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