CGT Query

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    CGT Query

    I have never claimed CGT allowance but may need to after selling an inherited property. The property gained in value during probate. The sold price was £153k and the valuation at death for 'capital gains purposes' was £130000. There are 3 shares. My share of selling price is £51k and share of gain is £7667.
    Are my 'proceeds' £51k (before deducting legal and marketng fees) or £7667?
    If £51k, does that mean I MUST note the capital gain, as that value is more than 4 times the CGT threshold?
    If I do need to note in my Self Assessment, will the gain of £7667 be addded t my income, hence paying 20% tax on that also, along with the profit from my rental property?
    Apologies in advance if my queries sound dumb.

    #2
    The property sold for £153K minus £130K ( acquisition cost) = £23K capital gain.

    For one third share, sale proceeds was £51K minus £43,333 ( acquisition cost ) = £7,667 capital gain.

    The CGT personal allowance ( tax free) = £12,300 . Therefore Nil tax to pay.

    Comment


      #3
      As Gordon says. How was it valued for probate purposes?

      Comment


        #4
        Thank you for replies. Re how it was valued, this is where my head spins. Our mum passed away around 8 years ago. We got probate in 2019. Property was transferred into 3 siblings names in 2020, so that we could benefit from personal CGT allowance. The solicitor sent us a document 'for hmrc cgt purposes' which was a valuation by a surveyor - this was sent to us just after the title transfer. On that document, it quotes the value - 'as at death', as £130000, and inspection date of 2020. It sold for £153k in Autumn of 2020.
        I've been told to use the 'valuation as at death' for cgt calculation.
        I now understand what computation is. If there is no cgt to pay, do I still need to put that in?

        Comment


          #5
          - You have to submit the CGT calculations within 30 days regardless of whether there is CGT to pay (else you get large and increasing fines)

          No it is not added to your income for this purpose

          Comment


            #6
            Thanks for reply, much appreciated.
            I asked my solicitor about the 30 day rule and he emailed me back saying I didn't need to do this as no cgt to pay but, as I do a yearly self assessment, to include it my self assessment. I'll be sending it off this week. There's a website called 'xxxx' which has a table about who does and does not need to report within 30 days. It says if no tax to pay, don't need to do 30 day reporting thing. I'm now worried ++.
            Do I need to include a computation? Hope someone can advise.

            Comment

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