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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15979
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Again, I have a further question about the SA900 form.

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Hello again, I have a further question about the SA900 form. My father in law died in Jan 2015 and left 4 several properties (1 joint owned with the wife, the other 3 in his sole name), as follows:1) Firstly, there was the family home, which he joint-owned with his wife. This passed automatically to his wife I understand upon his death. This was sold in Sept 2015 for below the market value. I have been told that this is not reportable on the estate SATR.2) The proceeds from the family home sale were used to pay off a mortgage on a second property (owned solely by my FiL), which was then gifted to my wife and I in December 2015. We believe there was no capital gain due to the deterioration of the property since my father-in-law's death (and we have a professional valuation).3) A delapidated property worth £120k (owned solely by my FiL) was sold at auction in May 2015. No CGT for sure.4) My mother-in-law now lives in the final property (a flat), which will be her sole residence. It is the final asset still owned by the estate (with a mortgage on it).My question is two-fold:a) My accountant has submitted the estate SA900 for 2015/16 just now, but as no gains had been realised from property sales, I didn't mention them on there. Should I have? And if so, is this a problem?b) Do my wife and I (who have been gifted property 2) have to notify HMRC about the fact that we received this gift officially?Many thanks,
Hi. Let me take a look at this and I'll get back to you.
1 There is no need to report transfers of assets or cash which are in line with the Will of the deceased.2 If you look at question 5 on page 3 of the SA900 here you will see that where the sum of the proceeds of disposals of assets such as property and shares exceeds £44,400 in the 2015/16 tax year, the gains or losses need to be reported to HMRC.3 See 2 above.4 I assume this will be transferred to the widow at some point. a The gains and losses should be reported as the proceeds clearly exceed £44,000. Just have the accountant amend the SA900 and to submit it to HMRC. As there is no tax to pay, it shouldn't cause any problems.b No, you don't. It would be worth keeping any paperwork which proves how you acquired the property. If you let it, you will need to report the rental income and expenses. I hope this helps but let me know if you any further queestions.
Customer: replied 1 year ago.
Many thanks.2) There are two tick boxes by Q5 on the SA900 - so do we tick the top one only and resubmit, or do we need to tick both, and also fill in and submit the SA905 (trust and estate capital gains)?4) Yes, this will be transferred to he widow at some point, and will be here sole residence. It's just not possible to do this right now as there is a mortgage in place still which needs to be updated. Presumably, when we finally manage to put this in the widow's name, there will be on CGT despite the time gap? As she was the sole beneficiary in the will.
2 See the notes for Q5 on page 9 here. Tick the top box and ignore the bottom one. 4 There would be no CGT to pay and the property can simply be transferred out of the estate.
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Customer: replied 1 year ago.
Many thanks, ***** ***** been very helpful (again).