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Adverse Possession

dikscrogg
Posts: 1
Joined: Wed Jan 11, 2017 12:07 pm

Adverse Possession

Postby dikscrogg » Wed Jan 11, 2017 3:12 pm

Hi my question is about a property gained by adverse possession: in 2007 myself and 3 others were granted the title to the house we were living in by the Land Registry via the then law of adverse possession. We are currently in the process of selling the house but one my co-owners moved out some years ago so it is no longer his main residence which I believe will make him liable for capital gains. There is no category for gaining a property through adverse possession but am I right in thinking it should be regarded as a "gift"? In which case am I right in thinking his gain would be the difference between the market value of the house when we got it in 2007 and the price we sell it, minus any allowable expenses etc.? (everything divided by 4 as we are sharing all profit 4 ways).

Many thanks

pawncob
Posts: 3812
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Adverse Possession

Postby pawncob » Wed Jan 11, 2017 6:24 pm

It's specifically NOT treasure trove and it's not a chattel, but I think chattel treatment could be used for a valuation.
https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg76550p

http://www.taxationweb.co.uk/forum/post182880.html
With a pinch of salt take what I say, but don't exceed your RDA

bd6759
Posts: 1915
Joined: Sat Feb 01, 2014 3:26 pm

Re: Adverse Possession

Postby bd6759 » Wed Jan 11, 2017 10:25 pm

There are no provisions for treating the acquisition at market value. The normal rues will apply:

http://www.legislation.gov.uk/ukpga/1992/12/section/38/enacted

The costs of acquiring legal title will be allowed.


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