Is this right? - re: land registry deeds

Toocomplicated

Inherited half a house 7 years ago - bought other share.
The problem I have encountered is that on the Land registry it shows that the property was sold for the half share. Where do I stand with this when I sell? Will I have a huge capital gains tax to pay? Can I get the deeds changed after so long? I only realised the error when a viewer asked me what was wrong with the house as it was sold so cheaply previously.
Many thanks.

N79

When you do the tax return just do it on the value of the property that you paid, not the error at the land registry. If HMRC investigate you can show them the original sale contract and explain that it was a land registry / your solicitors error.

With 7 years of allowances and your costs there wont be much a tax bill even if the full sale price had been 50000.

RabbitMad

So you inherited 1/2 the house @ what value - £100k? if so your base price is £100k and your gain is £25K - minus buying costs, sale costs and renovation work will leave you will a gain of probably less than £10k which will be covered by your annual allowance.

RabbitMad

N79 wrote: »

With 7 years of allowances

I haven't kept up to date with tax rules - but what allowances are these - I thought you annual CGT allowance was a use it or loose it type thing.

Land_Registry

The price paid entry will have been entered on the land register based on the information provided at the time the property was, I assume, transferred by you and your sister to just you.

Generally we will not enter a price paid if it is considered to be misleading, such as when the value stated represents only a half share of the value of the property. It is quite possible that this was not highlighted or explained at the time that the application to register the transfer was lodged.

Clearly I do not know the specifics of your property or title but if you wish to query the entry then you should write to the relevant Land Registry office and provide evidence that the transfer was in fact only of half a share in the property. A simple request to remove or amend the entry will not be considered.

Further information on the entry of the price paid on the land register, including our obligations to do so, is available in Practice Guide 7 available online at our website. You can also identify the relevant office for your property via the About Us > Contact Us > Offices link

The other issues raised re CGT etc are not within the Land Registry's remit I'm afraid

Neilhmtn

RabbitMad wrote: »

I haven't kept up to date with tax rules - but what allowances are these - I thought you annual CGT allowance was a use it or loose it type thing.

It is. The poster was probably thinking of indexation allowance or taper relief, neither of which applies to individuals any more.