Capital Gains Tax

00ec25

xylophone wrote: »

Was the house valued for probate?

assuming probate was done in 1979 then its value is irrelevant

the value for pre 1982 assets was "rebased" to its value on 31 March 1982. You must use its value on that date in your CGT calculation as the "base cost" of the property. This means that the gain between 1979 - 1982 is now tax free as you will pay CGT only on the gain post 1982

http://www.hmrc.gov.uk/manuals/cgmanual/cg10245.htm
http://www.hmrc.gov.uk/manuals/cgmanual/cg16701.htm

HMRC rules on how to value http://www.hmrc.gov.uk/svd/val-land-prop.htm including
"1.7. Where can I find evidence of 1982 values?
This is becoming more difficult as the years go by and to assist taxpayers with indicative levels of value, the Valuation Office Agency (VOA) publishes a 1982 Property Market Report (Opens new window)."

poppysarah

See if the papers will do a story about you if you think it's a bit high.
http://www.dailymail.co.uk/news/article-2581368/Paul-Daniels-136k-tax-bill-caring-mother-Magician-spent-thousands-adapting-home-facing-massive-capital-gains-tax-bill.html