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Where Taxpayers and Advisers Meet

Property Capital gains

tommie12
Posts:10
Joined:Tue Jul 26, 2016 2:35 pm
Property Capital gains

Postby tommie12 » Wed Nov 23, 2016 12:00 pm

My wife inherited a property on 2nd January 1995 with probate value of £22000. On 1st August 2009 she gifted me half, and property was worth £125000.
The property was sold for £135000 on 2nd August 2015. The property was our private residence from 2nd January 1995 through to 5th August 2007. It was then occupied rent free by my wifes son through to the date of sale.
My questions are as follows:
a) is letting relief available under the above circumstances, bearing in mind no rent was actually received
b) my understanding is that my acquisition cost will be half of the original probate value. However am I entitled to some private residence exemption, bearing in mind my acquisition value is different from my acquisition date.

tommie12
Posts:10
Joined:Tue Jul 26, 2016 2:35 pm

Re: Property Capital gains

Postby tommie12 » Wed Nov 23, 2016 4:03 pm

I don't think I have explained question (b) correctly so I will try again.
The half share was gifted to me on01/08/2009.
My acquisition value however is I believe one half of the probate value on 02/01/1995
Under those circumstances can I assume that the private residence exemption runs from 02/01/1995, or is it 01/08/2009 which would result in no private residence relief.

Peter D
Posts:10668
Joined:Wed Aug 06, 2008 3:37 pm

Re: Property Capital gains

Postby Peter D » Wed Nov 23, 2016 5:25 pm

So when the share was gifted to you ( Interspousal Transfer ) you were not living in the property. Regards Peter


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