Capital Gains Tax on second home

missile

Hi,
I supplied funds for MiL to purchase her council owned property.
She signed property over to me, April 2001. Unfortunately, I did not have property valued at this time.
She lives rent free and I will sell as and when she no longer needs her home. 
Please advise, how would I estimate what my capital gains tax liability might be?

AdrianC

Using comparable sales from the time.
https://landregistry.data.gov.uk/app/ppd/

missile

Hi, Similar house sold for £152,000 close to date I took ownership. If I sold the property for this + not more than CGT allowance, i.e. £164,300, I would be liable for zero CTG?

AnotherJoe

Yes... BUT .....  does that mean it really hasn't gone up much since then, or would this be a contrived sale to a relative?

MobileSaver

missile said:

I supplied funds for MiL to purchase her council owned property.
She signed property over to me, April 2001. Unfortunately, I did not have property valued at this time.
She lives rent free and I will sell as and when she no longer needs her home. 
Please advise, how would I estimate what my capital gains tax liability might be?

Presumably this was to take advantage of RTB and your MiL waited five years before signing over to you?

In which case there'll definitely be a valuation from 1996 and someone must have valued the property in 2001 to work out what fee was payable to Land Registry when the property was transferred to you.

Or am I missing something?

missile

MobileSaver said:

missile said:

I supplied funds for MiL to purchase her council owned property.
She signed property over to me, April 2001. Unfortunately, I did not have property valued at this time.
She lives rent free and I will sell as and when she no longer needs her home. 
Please advise, how would I estimate what my capital gains tax liability might be?

Presumably this was to take advantage of RTB and your MiL waited five years before signing over to you?

In which case there'll definitely be a valuation from 1996 and someone must have valued the property in 2001 to work out what fee was payable to Land Registry when the property was transferred to you.

Or am I missing something?

There was a valuation by the council when MiL purchased. There was no valuation when I took ownership of the property, it has been recorded by land registry as >

Love, Favour and Affection
The transfer of a property from one party to another e.g. a relative or spouse as a gift without monetary value.

Property is in joint names and currently it is not worth more than £176,600.
Obviously, the value may increase in the future. Just thinking ahead. Thanks to all for your comments.