Valuation of my house 9 years ago

ejk43

I bought a property in Jan 2001. I paid 64,000 for it. I lived in it until October 2007. I then bought another house and began to rent the house I had bought in 2001. I would now like to sell the first house, but need to know my position re Capital Gains Tax. How can I reliably know what my house was worth when I began to rent it. I know it is now valued at 165,000. In 2007 property prices peaked and I'm sure it was worth at least 150,000 at that time. But how can I be sure and how does the taxman make this calculation?

p00hsticks

ejk43 wrote: »

I bought a property in Jan 2001. I paid 64,000 for it. I lived in it until October 2007. I then bought another house and began to rent the house I had bought in 2001. I would now like to sell the first house, but need to know my position re Capital Gains Tax. How can I reliably know what my house was worth when I began to rent it. I know it is now valued at 165,000. In 2007 property prices peaked and I'm sure it was worth at least 150,000 at that time. But how can I be sure and how does the taxman make this calculation?

Someone with a bit more knowledge than me will be able to confirm this, but I don't believe it's necessary to know any interim values.

As a starting point, your profit is simply the difference between your eventual selling price and the original price at which you bought. It's basically assumed that any rise in value was steady between the two dates.

The number of months in which you lived it in it and the number of months in which you let it out is then used to calculate the details - I think there are a number of threads giving the detail over on the 'cutting tax' board.

Sus59

This might help:
https://www.gov.uk/tax-sell-property

Bluebirdman_of_Alcathays

The interim value is irrelevant. Your gain is sales price, less purchase price, less allowable costs. You can then claim whichever reliefs are applicable to your situation. Does an accountant assist with your rental income tax computation? They can also help with CGT.

booksurr

ejk43 wrote: »

I bought a property in Jan 2001. I paid 64,000 for it. I lived in it until October 2007. I then bought another house and began to rent the house I had bought in 2001. I would now like to sell the first house, but need to know my position re Capital Gains Tax. How can I reliably know what my house was worth when I began to rent it. I know it is now valued at 165,000. In 2007 property prices peaked and I'm sure it was worth at least 150,000 at that time. But how can I be sure and how does the taxman make this calculation?

your gross gain is 165 - 64 = 101k - any buying and selling costs = £x

you can claim private residence relief and letting relief, plus your personal allowance

read this for an example of the calculation mechanics..I doubt you will have any CGT to pay at all
http://forums.moneysavingexpert.com/showpost.php?p=69071134&postcount=6