How do I go about finding a CGT specialist?

RedTomato

Hello and thank you to anyone who can advise.

I have never had to employ an accountant as I have straightforward tax affairs. However, I will shortly be selling my home that I inherited jointly with a sibling. As we are joint tenants on the lease, I am sure that my sibling is liable for CGT on their part of the substantial increase in price.

I have lots of questions, from the basic, on what date is the ownership counted from (death? Probate? change of title on land registry?) to much more complicated ones about paying less CGT if possible.

Hence I thought that I'd better employ an expert, but where do I find one and how do I know if their fees are reasonable?

Anyone know?

WHA

You don't need a specialist. What you are asking is fairly mundane for the average accountant. I would make sure that you go for a qualified accountancy practice - the term "accountant" is not protected so anyone can call themselves one without qualifications, experience etc. - Best to go with a firm that includes "chartered" in its description - I would suggest that a Chartered Accountant (ACA), Chartered Certified Accountant (ACCA) or Chartered Tax Adviser (ATII) are your best bets. Ask around your friends/associates to see if anyone has an accountant they'd recommend. If not, just talk to 2/3 local ones, get detailed quotes (i.e. their hourly rate and estimated number of hours), and choose the one who seems the most friendly/knowledgeable, efficient, etc.). I really wouldn't think it would cost too much at all - like I say all bog-standard stuff from what you've said. But it would help for accuracy and efficiency if you compile all the relevant information yourself beforehand, so they don't have to waste expensive time writing themselves to solicitors/valuers etc, so take a copy of the will/probate/letters of admin, also all professional valuations, copies of invoices for property improvements, legal/agents fees, etc. The more you hand them on a plate, the less time they spend, hence the cheaper they'll be.

Cook_County

jackdoor wrote: »

I would avoid paying any professional fees on this matter if I were you. Just a few direct questions on MSE will help you work out the liability. It's going to be pretty straightforward and re. paying less there's not much you can do in a pretty cut & dried case. Did they ever live in the house as their main residence from ownership involvement?

Also don't forget that it's not a sin to approach the IR for some advice - they're pretty good these days to be honest.

It'll be down to the difference between the sale proceeds, less any costs that can be justified then applying non-business taper relief (depends on length of ownership as to how generous this is - max. 40% relief). Depending on how long she's part-owned the property there may also be an indexation calculation (applies up to 5th April 1998) before arriving at the figure to apply taper relief to.

Get together dates & figures etc. and ask on here - you'll soon have it worked out.

Here's a form you can use if it helps.
http://www.hmrc.gov.uk/forms/sa200cg.pdf

This is not the question in this instance. Yes HMRC will help if they have all of the facts but they are not trained to ask the creative questions a tax professional will ask.

It is common in such circumstances to pay an accountant so that both siblings know that the correct solution has been agreed.

The OP will of course also pay a solicitor and estate agent on the sale, unless jackdoor thinks it would save money to have these things handled on this Forum as well?

In this case the OP is not going to provide all of the figures, dates costs etc to this Forum. An Accountant or Chartered Tax Adviser (ACA/FCA/CTA/ACCA etc) would gladly do the work required. Follow WHAs suggestions. He is always clear and provides excellent plain English suggestions.

RedTomato

Thanks for your replies :-)

I will try a few questions on here but I think that I should take professional advice too.

Working out the taper relief looks pretty complicated for a start!

Actually though, if anyone can tell me what date we are considered to own the property from, that would be a start, I presume it could be one of the following but don't know which:
date of death, date of probate, date of lease transfer..

debwray

http://www.hmrc.gov.uk/helpsheets/ir282.pdf

debwray

http://www.hmrc.gov.uk/helpsheets/ir283.pdf

Covers the basics for PPR.

Do you live in the house ?
Has your sibling lived in it with you over the period since you inherited it ?
Do you know the last 36 months of ownership of a PPR are CGT exempt ?
If you have two or more residences do you know you can elect which one to treat as your PPR ? ( but time lmits apply)
Would your sibling move in for a period if financially beneficial ?

Review the guidance .. and keep these questions in mind.. Might not even need to calculate any CGT if you make the gains exempt :j

hopon

RedTomato wrote: »

Thanks for your replies :-)

I will try a few questions on here but I think that I should take professional advice too.

Working out the taper relief looks pretty complicated for a start!

Actually though, if anyone can tell me what date we are considered to own the property from, that would be a start, I presume it could be one of the following but don't know which:
date of death, date of probate, date of lease transfer..

Date of Death

RedTomato

thanks to everyone for their replies, I'm wading through the HMRC stuff at the moment

johnllew

Cook_County wrote: »

they are not trained to ask the creative questions a tax professional will ask.

That made me smile - accountants can be dab hands at being creative.