CGT and hometrack valuation

Bookworm105

your calculation must be split to reflect the fact you acquired two "halves" at different times. I may be misreading your comment but you cannot do total gain x 90%: 
first 50% should be discounted to reflect the fact you owned a part share
final 50% some 6 years later should be at full value since you then owned the whole.

desktop valuation will be based on house price index for that location over the relevant timespan and should then be compared to actual sold prices of identical or near identical properties at the relevant date. The VOA will follow the same methodology but may, or may not, also do a physical drive by. They will not inspect inside the property.

If you prefer lower prices then go with your "desktop valuations" and assume that the VOA will not challenge your figure. However, make sure you understand their prices if there is a challenge and you need to them to represent you.

I share your cynicism regarding do not give HMRC too much info until they actually ask for it.

Using an accountant does nothing more at the outset than ticking a box so the HMRC computer may, or may not, flag the calculation as "lower risk". That is a total gamble. Obviously if challenged that having professionals on your side improves your credibility but is not a guarantee you'll win.

bigbeary

thanks, I think I have misunderstood the discount - it's that even if the house was valued at 100 when my father passed away - instead of the value of my inheritance being 50k, its 10% less, so the first component is 45k.  The full component is valued normally so its the 50% of the second price say 150 - so 75k.  The impact is I have slightly less of the inheritance.

The houses are flats, so everything is exactly the same physically and they sell regularly.  So a desktop valuation is probably ok - one question though - would a historic valuation be a cgt deductible ?  As if it is, I may as well have a proper one, though in Scotland sold prices can be massively higher than asking prices 

mybestattempt

bigbeary said:

thanks, I think I have misunderstood the discount - it's that even if the house was valued at 100 when my father passed away - instead of the value of my inheritance being 50k, its 10% less, so the first component is 45k.  The full component is valued normally so its the 50% of the second price say 150 - so 75k.  The impact is I have slightly less of the inheritance.

The houses are flats, so everything is exactly the same physically and they sell regularly.  So a desktop valuation is probably ok - one question though - would a historic valuation be a cgt deductible ?  As if it is, I may as well have a proper one, though in Scotland sold prices can be massively higher than asking prices 

If you instruct a RICS surveyor you should be asking him/her for two historical values; the market value of your share at the date of death of your father and the market value of your share at the date of death of your mother.

Those historical values are deducted from the net sale proceeds when you sell the property to calculate the capital gain.

HMRC would ask the VOA if they agreed with those historical values.

(I think @Bookworm105 can probably explain this more comprehensively than I have)

bigbeary

Yes I have emailed for some quote - best doing it right!