CGT on gifted house

booksurr

uknick wrote: »

I assume your mother transferred the property correctly notifying the Land Registry of the change of owner. Therefore, one would have thought the value declared on the land transfer form TR1, or whatever it was called 20 years ago, would be adequate for tax purposes.

since we do not know the circumstances of mother becoming the owners 20 years ago you cannot say that
- mother may have directly inherited all or part from grandad (probate value)
- granny may have gifted all or part to mother outside (market value) or inside of a trust (more complex !!!)
- mother may have specifically bought it for granny to live in (price paid)

uknick

booksurr wrote: »

since we do not know the circumstances of mother becoming the owners 20 years ago you cannot say that
- mother may have directly inherited all or part from grandad (probate value)
- granny may have gifted all or part to mother outside (market value) or inside of a trust (more complex !!!)
- mother may have specifically bought it for granny to live in (price paid)

The OP says;

"About 20yrs ago my Mum put a house in my name that was hers but my Gran lived in rent free."

My reading is the OP, daughter, was given the house 20 years ago by her mother. I assume at nil consideration as it is described as "given".

Based on that why would Land Registry papers not have been completed when the property was transferred to the OP from her mother?

If the value used to transfer the property is not adequate for HMRC, at least as a first stab at it, how does one go back 20 years and get a valuation? I accept the points made previously about a possible diminution in value with the grandmother living there, however we don't know the full circumstances as to what rights she had to live there. If the papers were completed the valuation issue should have been dealt with 20 years ago.

Having said all that, if it was a given in name only and never legally transferred, then the OP needs to be looking at the probate value used at the time of her mother's death 10 years ago. Of course, this again assumes it was declared as part of her mother's estate.


Edit: I hope I'm not coming across as a smart***e/fool but I'm genuinely interested as to what documents you would use to value a transfer 20 years ago if no actual sale papers exist.

CLAPTON

uknick wrote: »

The OP says;

"About 20yrs ago my Mum put a house in my name that was hers but my Gran lived in rent free."

My reading is the OP, daughter, was given the house 20 years ago by her mother. I assume at nil consideration as it is described as "given".

Based on that why would Land Registry papers not have been completed when the property was transferred to the OP from her mother?

If the value used to transfer the property is not adequate for HMRC, at least as a first stab at it, how does one go back 20 years and get a valuation? I accept the points made previously about a possible diminution in value with the grandmother living there, however we don't know the full circumstances as to what rights she had to live there. If the papers were completed the valuation issue should have been dealt with 20 years ago.

Having said all that, if it was a given in name only and never legally transferred, then the OP needs to be looking at the probate value used at the time of her mother's death 10 years ago. Of course, this again assumes it was declared as part of her mother's estate.


Edit: I hope I'm not coming across as a smart***e/fool but I'm genuinely interested as to what documents you would use to value a transfer 20 years ago if no actual sale papers exist.

to determine the value of property 20 years ago one could use the district valuers office (branch of government)

however I do not know how one assesses the reduction in value due to the live interest of the grandmother

silvercar

CLAPTON wrote: »

to determine the value of property 20 years ago one could use the district valuers office (branch of government)

however I do not know how one assesses the reduction in value due to the live interest of the grandmother

There are acturial tables available that assess this. Eg the reduction for someone of 105 would be less than thT for a 55 year old.