CGT how to assess Market Value when o/s legal issues re carpark

Sooetie

I am doing my Mum's CGT return for a flat she originally occupied and then let.


I've worked out the times of letting and occupancy thanks to an excellent post by 00ec25.


The flat has a 7year ongoing legal issue re a wall in the carpark which fell down. It could cost 50k+ between the 16 properties involved & because of this for years these properties seem to have been blacklisted by mortgage companies.


So last year I downsized and bought the flat so we both could clear our mortgages and I would be close to mum as she has early stage Alzheimers.


I paid about 80% of market value if the flat had no issues and in best condition. But with being let for 15 years and the o/s legal issue who knows what the MV would be.


Would this be a reasonable price or should I enter a higher MV on the return?

Sooetie

Had a chat with Mum and we decided to declare the higher amount. We can't be doing with extra stress.


Just hope nobody else has this problem

00ec25

being let for 15 years won't impact the value

whether the "legal issue" impacts the value rather depends on whether a professional valuer would allow that to be a factor or not.

If your argument is that you paid full market value at 80% because of the above issues I seriously doubt you have sufficient evidence on paper to support use of such a figure when you come to do your CGT in X years time. Bearing in mind that by that date the VOA will only have generic historic records against which to compare and they won't reflect your precise circumstances so most likely they would value it at 100% landing you with a bigger CGT bill.

pay a valuer to produce a written value that will stand the test of time....

Sooetie

Thanks 00ec25


Your post on CGT is excellent



We have decided to declare the supposed MV. I still think it unfair as if anyone else bought it the price would not be a question.


At this time we just want everything sorted and just get on with life.


Thanks again for your post on CGT as I had spent a couple of hours getting nowhere on the Gov site


Regards Sue