Capital gains tax on an inherited property

Anna_Flix

Hi,
In 2013 I inherited a property abroad from my dad who was not a UK resident. I’m a UK resident and reside here full time.
I have just sold the property and was wondering how to calculate the CG I owe as the property was not valued at the time of my dads death.
Any help would be greatly appreciated!

Anna

xylophone

Are you able to obtain a historic valuation from a professionally qualified person in the country where the property is situated?

Anna_Flix

What would a suitably qualified professional entail? I know HMRC say not to use estate agent valuations.
Do I have to present any valuation documents when I fill in my tax return or only if HMRC ask for one?

Tom99

[FONT=Verdana, sans-serif]You could come up with your own reasonable estimate is you think you know enough about likely values.[/FONT]

Anna_Flix

Does nothing have to officially be submitted to HMRC regarding the valuation? I wouldn’t know enough about it at all

Uxb

In the UK such a qualified person to do a valuation as of a specific date would be a RICS qualified/registered person.
This is how executors get UK property valued as of the date of death for IHT purposes in the UK.

It may well be that in the UK some employee in an estate agent's business does hold those qualifications but in general an estate agents valuation is not regarded as sound.

xylophone

Where is the property situated? You need to find the appropriate professional.

Example

https://www.notaires.fr/en/housing-tax-system/selling-quickly/french-notaire-specialist-property-valuation

00ec25

you do not have to submit evidence of a valuation when filing your tax return
UK taxation is based on SELF assessment, you decide how much you owe, you submit that, HMRC check a (very small) number of submissions and crucify anyone who cheats

HOWEVER
HMRC will get their own in house professional valuers (VOA - Valuation Office Agency) to "take a view" of whatever figures you have used. HMRC's word is final unless you are strong enough to take HMRC to a tribunal at which you (or more realistically, your professionally qualified valuer) argues for the figure you used and say that HMRC's figure is wrong. The tribunal will decide based on who presents the best case, you or HMRC - and yes, professional valuers DO win in that situation. HMRC is far from infallible, but their word is final if you don't contest

so your position is thus:
a) the property was overseas so HMRC's valuers will be less confident of their knowledge
b) you need a historic valuation
c) either there is info readily available on historic sold prices in the location or there is not. If publically available use it yourself and don't get a professional. Present it to HMRC if needs be. OR get an overseas professional to do a value, hope their credentials are recognised by HMRC who are then overwhelmed by said credentials and roll over and accept that value OR get said overseas valuer to present to a tribunal and win

If you want a heads up as to whether HMRC will accept your valuation before you need to pay the tax then submit a Form CG34
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/655991/CG34_1017.pdf