CGT Query

[dasmith]

Dear Forum
Hope someone can help with my calculation

A rental property was purchased July 76 for £12500 by father
He lived in until July 2003

Crossover period, he gave son half property in July 2001, son lived in until July 2006.

The property was rented out until sale in July 2010 for £160000

Any CGT due for both parties? both BR tax payers

[Peter D]

The Father would have no CGT liability whilst when we gave a share to his Son. However after he left plus 36 months would be exempt after which there would be a liability but actual dates, value at 31st March 1982 would have to be established. Letting relief would also apply on his share of the property so there may be no actual liability.
The Son may have a small CGT liability but PPR ( Read HS283 on the HMRC web sote ) and Letting relief should have offset that to zero. To check this the value of the 1/2 to the Son would have to be established at the date of the Transfer.
Regards Peter

[dasmith]

Thanks a lot Peter

Assume March 82 would be £20k and value at transfer £110k

Any CGT please? can I see your workings please to understand more?

Many thanks again

[Peter D]

Father:
Acq Value 10,000
Dis Value 80,000
Total Gain 70,000
PRR 60,059 290/338
Cap Gain 9,941
Lett Relief 9,927
Net Gain 14
CG Allow 10,100
CGT 18% 0
CGT 28% 0

CGT Bill 0

Son :
Acq Value 55,000
Dis Value 80,000
Total Gain 25,000
PRR 13,679 58/106
Cap Gain 11,321
Lett Relief 11,273
Net Gain 48
CG Allow 10,100
CGT 18% 0
CGT 28% 0

CGT Bill 0

The odd numbers of Net Gain are caused by PPR in whole months and LR is whole days. If we used whole days throughout and actual dates then it would most probable be zero.

Regards Peter

[mullet]

This sounds like another practice exam question. Is it the season?