CGT query

CatCalledColin

HI All
Hoping for some advice. I just sold a property that i had rented out for the past 8 years. I am trying to fill in the capital gains tax form and stuck at the first hurdle! 
I inherited the flat 8 years ago with my brother, i then bought by brother out and have been renting it since. Do i declare this property as bought or inherited - as it was 50/50 on both. 

TIA

[Deleted User]

Not sure that should be attempting this without seeking advice - might be worth paying to ensure that it is declared correctly. 

Treat each half separately. One half equates to half sale price less half selling costs less half value at inheritance. The second half equates to half selling price less half selling costs less price paid for brothers half share. Improvement costs can also be deducted. Add the two together.

Any gain must be declared and tax paid within thirty days of disposal. 

One presumes that your brother declared his gain at the time of transfer and that the actual market value was used if higher than the price that you paid?

CatCalledColin

There was nothing for my brother to declare at the time, the estate didnt reach inheritance tax threashold and I paid market value to buy him out at the time.  I checked this out at the time. 

I am aware it needs to be done within 30 days - completed on Thursday after 6 months since the offer went in. 

I will try and get some advice.  

Thanks

[Deleted User]

If you bought your brother out at the time of the inheritance, I would just use Sale Proceeds less probate value less costs of sale less improvement costs on the whole property. 

While this conflicts with what I said earlier, I had made the assumption that you bought your brother out some time after inheriting the property.

CatCalledColin

Thankyou that is really helpful. I will do that - makes sense i just wanted to double check. 

CatCalledColin

I have another question, i have put some of the sale if the flat into my private pension. Where do i out this in the form? Is it section of "other tax reliefs?" would i name it pension? I know i can claim this as tax relief its just not clear where this needs to go.  

[Deleted User]

It goes on the main form under reliefs:

Payments to registered pension schemes where basic rate tax relief will be claimed by your pension provider (called ‘relief at source’). Enter the payments and basic rate tax

The main tax relief on a personal pension is obtained by the provider from HMRC. If you personally pay 800 they will claim an additional 200 to make the contribution 1000 - that is what you enter. If you are a higher rate taxpayer you can claim additional relief on this 1000.

Jeremy535897

CatCalledColin said:

I have another question, i have put some of the sale if the flat into my private pension. Where do i out this in the form? Is it section of "other tax reliefs?" would i name it pension? I know i can claim this as tax relief its just not clear where this needs to go.  

Just to be clear, pension contributions are not entered anywhere on the capital gains tax pages.