CGT or no CGT!
BCASL
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Hello everyone, could someone please clarify a CGT dilemma for me, two properties involved, timeline as follows:
Property A - Purchased 1964 for £4000, lived in until 1987, when Property B was bought for £58000. Owner moved into property B in 1987 and lived there ever since (Primary Residence)
Property A rented out from 1987 to 2007 and then left derelict to date. Owner now wants to sell property A, has had offers for £400,000.
I wondered what peoples views were, I am assuming:
Property B – no CGT as primary residence and the owner will continue to live there?
Property A 1964 – 1987 Primary Residence Relief, 1987 – 2007 Letting relief? 2007 to date, not sure? If there is a CG, from when to when?
Any advice would be gratefully accepted.
Many thanks
Property A - Purchased 1964 for £4000, lived in until 1987, when Property B was bought for £58000. Owner moved into property B in 1987 and lived there ever since (Primary Residence)
Property A rented out from 1987 to 2007 and then left derelict to date. Owner now wants to sell property A, has had offers for £400,000.
I wondered what peoples views were, I am assuming:
Property B – no CGT as primary residence and the owner will continue to live there?
Property A 1964 – 1987 Primary Residence Relief, 1987 – 2007 Letting relief? 2007 to date, not sure? If there is a CG, from when to when?
Any advice would be gratefully accepted.
Many thanks
0
Comments
Property A:
1964 – 1987 Primary Residence Relief - yes (did an election need to be made, if so was it made, or is it just matter of fact? Can't remember.)
1987 – 2007 Letting relief - yes, I believe so. Remember you have a choice of the higher/lower of something like actual or £40k.
2007-date - it's not PPR so it's chargeable to CGT. Don't forget last 3 years are exempt irrespective of circumstances. So let's say it gets sold this year, 2009-2011 will be exempt from CGT, and 2007-2008 will be chargeable, unless any other reliefs are available (I expect not).
Off the cuff! Think this is right though.
Of course, we have a further complication in that because the house was bought prior to 31 March 1982, we need to re-value it as the gainly applies from that date and it LOOKS like the letting relief will be restricted to £40000, due to the long period of letting (1987 - 2007). Need to figure out now how to get it re-valued as at 31 March 1982 - any ideas?
Ideas? No, sorry
Guidance on HMRC website about how to convert? Average house price index comparison/ extraoplation?