Capital Gains Tax

Pastyman_2

I inherited a half share in a property in 2016 and then inherited the other half in 2022.  It is a rental property.

If I gift the property to my adult son, how would any Capital Gain be calculated?

[Deleted User]

I presume that you have never lived in it. Gain is 

Value of property at time of gift to your son less the sum of the two values of each half when inherited less improvement costs, 

You would need to obtain an independent valuation when the gift is made to your son.

Tax on the gain must be declared and tax paid within 60 days in addition to declaring on the tax return for the relevant tax year. 
 

Jeremy535897

You may also need to obtain values for each of the halves in 2016 and 2022, unless probate values were agreed with HMRC. If the estates concerned only included half of the property on the deaths, those values will be discounted. This is because a one half share in a property is worth less than half the value of the whole property.

Pastyman_2

Thanks for the replies.
Can I use a local estate agent for valuations or do they have to be done by a RICS surveyor?

Keep_pedalling

Pastyman_2 said:

Thanks for the replies.
Can I use a local estate agent for valuations or do they have to be done by a RICS surveyor?

You should be using the values submitted for probate. 

[Deleted User]

Pastyman_2 said:

Thanks for the replies.
Can I use a local estate agent for valuations or do they have to be done by a RICS surveyor?

A local estate agent will suffice.

Pastyman_2

Probate was granted in 2016 on the first death but was not required on the second death in 2022. 

Jeremy535897

Unless inheritance tax was paid in 2016, the probate value will not have been agreed with HMRC. However, it would be sensible to use this value unless it is clearly wrong. There are no hard and fast rules on who to get a value from, but a RICS surveyor's value will be the easiest to defend, in the unlikely event that HMRC argue with it.