Retrospective house values for Capital Gains tax

flakey321

Hi though a Tenants in Common arrangement which was drawn up in Oct 2018 on my grandmas property I'll be receiving a 6.25% share following it's recent sale. For a capital gains tax point of view I assume I would need to find out the value of the property in Oct 2018 - to my knowledge no valuation was carried out at the time. How does one go about finding out a valuation that would be suitable for tax purposes. I can see through a variety of web sites what houses on the street sold for around that period but from a tax point of view is that suitable, obviously houses on the same street can vary quite a lot with things like extensions / condition of house etc.

Hope someone can help can me some pointers

Cheers

user1977

Surveyors can provide retrospective valuations, though I don't know whether that's necessary - have you figured out whether tax is even likely to be payable given the size of your share?

flakey321

user1977 said:

Surveyors can provide retrospective valuations, though I don't know whether that's necessary - have you figured out whether tax is even likely to be payable given the size of your share?

Hi yes i think it will as i've had some share sales this year too to add in to the equation. the house sale and the share sales on their own wouldn't hit the CGT threshold but prob will do together

macman

Recent sale: how recent? You are aware that CGT due on a property sale must be reported and paid within 60 days of the date of sale?
Beyond that date, penalties will apply.

flakey321

macman said:

Recent sale: how recent? You are aware that CGT due on a property sale must be reported and paid within 60 days of the date of sale?
Beyond that date, penalties will apply.

It should be going through in the next few weeks. I'd assumed that it would get entered on my self assesment at the end of the tax year - but is that not the case? do you therefore declare it now (which would definitely be under the CGT threshold) and then have to record it again on your self assessment at the end of the tax year? Do share sales mid tax year need to be declared straight away (again on their own under the threshold) or do they wait until self assessment?

thegreenone

I did the calculation online for the sale of my late Mum's flat, straight after completion. HMRC wrote to confirm my calculations were correct (amazing!) and I paid the bill. I think you can add it to your SA if it is imminent but otherwise do it asap after completion.

I didn't put anything on my next SA as it was a separate issue to my earnings and had already paid the tax.  Nothing back from HMRC/Accountants in 18 months.

Sorry, know nothing about shares.

flakey321

thegreenone said:

I did the calculation online for the sale of my late Mum's flat, straight after completion. 

Thanks for that, when you say you did the calculation online what site was it you used, and did the original valuation have to go back a few years?

p00hsticks

flakey321 said:

macman said:

Recent sale: how recent? You are aware that CGT due on a property sale must be reported and paid within 60 days of the date of sale?
Beyond that date, penalties will apply.

It should be going through in the next few weeks. I'd assumed that it would get entered on my self assesment at the end of the tax year - but is that not the case? do you therefore declare it now (which would definitely be under the CGT threshold) and then have to record it again on your self assessment at the end of the tax year? Do share sales mid tax year need to be declared straight away (again on their own under the threshold) or do they wait until self assessment?

There are different rules for reporting Capital Gains on Property - see here

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

The gov.uk website also has a calculator

hhttps://www.gov.uk/tax-sell-property/work-out-your-gain

flakey321

p00hsticks said:

flakey321 said:

macman said:

Recent sale: how recent? You are aware that CGT due on a property sale must be reported and paid within 60 days of the date of sale?
Beyond that date, penalties will apply.

It should be going through in the next few weeks. I'd assumed that it would get entered on my self assesment at the end of the tax year - but is that not the case? do you therefore declare it now (which would definitely be under the CGT threshold) and then have to record it again on your self assessment at the end of the tax year? Do share sales mid tax year need to be declared straight away (again on their own under the threshold) or do they wait until self assessment?

There are different rules for reporting Capital Gains on Property - see here

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

The gov.uk website also has a calculator

hhttps://www.gov.uk/tax-sell-property/work-out-your-gain

Thanks for the links there. My main issue is I don't know the starting value of the property as it was held in Tenants in Common whilst my grandma lived there. She has 50% of it and myself and sibling has what would have been my fathers share, with my grandmas other son and daughters having the rest of the share (my grandma has recently moved into a home, hence the house sale). So I need to find what the most effective way of determining the value in 2018

Annisele

How did you acquire the share in 2018?

If it was inherited, then there might have been a valuation back then for probate purposes.

If it was gifted, then (depending on whether the giver was connected to you), the relevant date for the valuation might be considerably before 2018.

If you bought it, you might just be able to use the price you paid.

macman

flakey321 said:

macman said:

Recent sale: how recent? You are aware that CGT due on a property sale must be reported and paid within 60 days of the date of sale?
Beyond that date, penalties will apply.

It should be going through in the next few weeks. I'd assumed that it would get entered on my self assesment at the end of the tax year - but is that not the case? do you therefore declare it now (which would definitely be under the CGT threshold) and then have to record it again on your self assessment at the end of the tax year? Do share sales mid tax year need to be declared straight away (again on their own under the threshold) or do they wait until self assessment?

So you haven't actually completed yet? Then it's not a 'recent sale'. My comment was unclear, I should have said that the CGT must be paid within 60 days of completion.
As others have stated, the process for CGT on shares is entirely separate and done via your annual SA.
You will presumably need to commission a surveyor to provide a valuation at the date of transfer of the property share to you.