CGT on property share

alan_d

Hello, i'm trying to make sure i'm putting the correct numbers into the online CGT calculators.

I own a 1/4 share of a property, which I was gifted about 12 years ago. I didn't pay anything for it. The ownership paperwork was correctly completed back then.

The property is currently being sold for about £280k. So therefore my share is £70k.
The property was purchased for around £150k originally. So I assume for CGT calculation purposes the original value is £37,500 rather than £0 (that it actually cost me)? Therefore the gain is £32,500.
I'm a 40% tax payer.
I assume that i'll need to submit a self-assessment for 2017-2018 and the CGT will need to be paid in the following tax year?

Keep_pedalling

Was it gifted to you at the time of purchase or at a later date? If the latter the calculation is based on the value at the time of the gift rather than purchase price.

Did you ever live in it?

alan_d

Keep_pedalling wrote: »

Was it gifted to you at the time of purchase or at a later date? If the latter the calculation is based on the value at the time of the gift rather than purchase price.

At time of purchase.

Keep_pedalling wrote: »

Did you ever live in it?

No.

00ec25

you are therefore correct, the gross gain will be 32,500 and the taxable gain will be that less any annual exempt amount you have not already used in 17/18.

It will be declared on your 17/18 tax return (assuming you already do one) and payable no later than 31 Jan 2019

Keep_pedalling

00ec25 wrote: »

you are therefore correct, the gross gain will be 32,500 (less any annual exempt amount you have not already used in 17/18) and will be declared on your 17/18 tax return (assuming you already do one) and payable no later than 31 Jan 2019

Unless the sale does not complete before 6th April in which case add a year to the above.

00ec25

Keep_pedalling wrote: »

Unless the sale does not complete before 6th April in which case add a year to the above.

not quite: the tax point for CGT is exchange of contracts as that is the date at which the contract becomes legally binding, not the completion date when the asset is conveyed between seller and buyer (unless the contract contains some unusual conditions that means it is not unconditional until the conveyance takes place)

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg14270

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg14260

alan_d

00ec25 wrote: »

It will be declared on your 17/18 tax return (assuming you already do one) and payable no later than 31 Jan 2019

I dont, haven't needed to do one for years. So I guess I'll need to voluntarily do one after April?

Keep_pedalling

00ec25 wrote: »

not quite: the tax point for CGT is exchange of contracts as that is the date at which the contract becomes legally binding, not the completion date when the asset is conveyed between seller and buyer (unless the contract contains some unusual conditions that means it is not unconditional until the conveyance takes place)

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg14270

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg14260

I stand corrected.

00ec25

alan_d wrote: »

I dont, haven't needed to do one for years. So I guess I'll need to voluntarily do one after April?

yes, you have sold assets worth >4 x the exempt amount so must declare the gain - but explore your options...

https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax