CGT or no CGT!

BCASL

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

Monsoon

Agreed on Property B.

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.

BCASL

Thanks Monsoon, that seems to confirm my thinking, it's one of those things I only do once in a while and the last one was some time ago!

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?

Monsoon

I did wonder whether 1982 came into it anywhere - like you, I deal with this stuff sporadically!

Ideas? No, sorry

Guidance on HMRC website about how to convert? Average house price index comparison/ extraoplation?