CGT BUILDING COSTS IN 1999

curlygirl43

We have just sold our house which we purchased 30 years ago.  We rented it out for half the time, which I know we can use against our CGT liability.  We also built a large extension of 80sqm, but the receipts have faded and we cannot find the original invoice from the builder.  I spoke to HMC who told us just to estimate the cost, which can also be used against our CGT liability - so does anyone know approx how much build costs were per sq m in 1999?     Thanks

eskbanker

curlygirl43 said:

We rented it out for half the time, which I know we can use against our CGT liability.

I don't know the answer to your building costs question, but the CGT liability is the other way round, i.e. it's the non-resident period that effectively generates the CGT liability and it's the time you live there that doesn't.  Perhaps academic if exactly 50/50 but important to use the correct calculation....

Nomunnofun1

As above - it is the time when the house was a main residence which constitutes the private residence relief. For example, 180 months out of 360 as main residence - add 9 months 189/360 of gain is exempt. 

I am not sure as to just how much knowledge the HMRC advisor possessed but it seems limited. You MUST indicate on the initial reporting (which must be done with tax paid within 60 days) 

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

and on your self assessment return as to whether or not estimates are being used. 

HMRC will most definitely seek further information - they will not simply accept an estimate. 

Hoenir

Obtain a RICS surveyors valuation for the property in 1999 . You've then something substantive to provide as evidence. 

Nomunnofun1

Hoenir said:

Obtain a RICS surveyors valuation for the property in 1999 . You've then something substantive to provide as evidence. 

Definitely- not least because that is exactly what HMRC will be doing!

curlygirl43

Hoenir said:

Obtain a RICS surveyors valuation for the property in 1999 . You've then something substantive to provide as evidence. 

Thanks for this, but can't see the relevance, just need the physical build costs, not the valuation, as I can deduct the costs from my CGT liability.

silvercar

Hoenir said:

Obtain a RICS surveyors valuation for the property in 1999 . You've then something substantive to provide as evidence. 

The valuation in a mid point of owning it is irrelevant, the key figures for valuation are the purchase price and selling price. OP wants the rebuilding costs and without receipts is looking to find an average building cost for the time.  

Archerychick

Google may be your friend here - several articles that will give you what you need