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Capital Gains Tax Queries
tonome
Posts: 69 Forumite
Mr A owns a house and in January 2003 he gifts half to B.
The house is sold May 2008.
B's CGT liability is (I assume) half the sale price less relevant costs and reliefs/allowances etc and less "HALF market value" of the property in January 2003....?
Question - how is the "market value" of the property in January 2003 ascertained?
Also - taper relief question...
Taper relief is given by reference to the number of complete years of ownership after 5 April 1998.....
Does "complete years" mean calendar or tax years? What would be the taper relief % for B in the above example?
Thank you - Tonome
The house is sold May 2008.
B's CGT liability is (I assume) half the sale price less relevant costs and reliefs/allowances etc and less "HALF market value" of the property in January 2003....?
Question - how is the "market value" of the property in January 2003 ascertained?
Also - taper relief question...
Taper relief is given by reference to the number of complete years of ownership after 5 April 1998.....
Does "complete years" mean calendar or tax years? What would be the taper relief % for B in the above example?
Thank you - Tonome
0
Comments
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Question - how is the "market value" of the property in January 2003 ascertained?
Comparable house prices, try one of the house websites as a starting point eg houseprices.com
Taper relief was abolished 5 April 2008, so unless exchange has already taken place that has gone.
CGT rate is now 18%, less CGT allowance, currently 9,600.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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