Capital gains on 2nd property

Keep_pedalling

This is far more complicated than I thought. I had rather assumed this was your mother's main residence when she gifted it to you.

If you mother inherited it and gifted it to you soon after, it is unlikely that she would have an CGT liability at that time. If you mother has other assets that take her into IHT territory, then gifting the property has not worked out too well, as that removes her primary residency relief, taking her maximum IHT relief down from £850k to £650k, and assuming she survives to April 2020 from £1M to £650k.

kidmugsy

cornwell74 wrote: »

KP the gift was made by my mother at the time as the flat passed to her when my father died.

Did she do it the sensible way, by Deed of Variation of your father's will, or did she accept the bequest and then just gift it to you directly from her own estate?

kidmugsy

By the way, OP, the tone of asperity of which you complain might be related to your reluctance to volunteer information intelligently.

[Deleted User]

cornwell74 wrote: »

I expect it would have been around £70k.

So given that between myself and my wife I get relief on £22.6k, at present value it's only £8.4k that's subject to tax.

All in all, it seems I'm in a reasonable position.

Do NOT transfer into joint names with your wife with a view to selling the property soon afterwards. This has been discussed ad nauseum previously on this forum. All I will say is that you should not rule out a challenge by HMRC on the transfer.

G4OJR

Could someone please point me in the direction of a source to help value a property at a date in the past when I inherited it. thanks

p00hsticks

G4OJR wrote: »

Could someone please point me in the direction of a source to help value a property at a date in the past when I inherited it. thanks

Unless you previously owned the property as joint tenants with the deceased, then I think the fact that the estate included property means that is should have gone through probate. This should have required a property valuation to have been obtained by the executor of the will.

So one way might be to go back and ask the executor ?

Keep_pedalling

G4OJR wrote: »

Could someone please point me in the direction of a source to help value a property at a date in the past when I inherited it. thanks

A RICS surveyor should be able to do that.

https://www.localbuildingsurveyor.co.uk/?gclid=EAIaIQobChMI7aj99vD41gIVwhXTCh3MTw01EAAYAiAAEgJQI_D_BwE

00ec25

G4OJR wrote: »

Could someone please point me in the direction of a source to help value a property at a date in the past when I inherited it. thanks

you must use the valuation that was given as part of the probate process. With a property involved, unless you inherited it under the survivorship aspect of being a joint tenant with the deceased, there must have been a grant of probate and therefore a value given to the property for the purposes of inheritance tax and that value is your base point for your now CGT.

If the deceased's estate actually paid IHT then that value has been agreed by HMRC (they call it "ascertained") and cannot be altered. If no IHT was paid, the value stated for the purposes of obtaining probate must be used. It is possible to retrospectively alter that figure but that is very different exercise and should be done by the executor of the estate as it has implications for them