Property value abroad 1982

[StefanT]

In 1962 I inherited a share of our family house in Bulgaria which I am currently in a process of selling.

I am a UK resident since 1996 and my understanding is that for the purposes of a CGT calculation I have to identify the house value in 1982. Correct?

The problem is that in 1982 Bulgaria was not at all a market economy and a free secondary property market did not exist as all sales were done via the state. So I don’t have any market value as an indicator. The other option – the so called “value for tax purposes” is impossible to be obtained so backdated. After 1989 the country went through very significant changes which made any previous paperwork very unreliable and difficult to find.

Does anyone have any idea how HMCR approaches similar cases please?
Any advice in this direction would be very much appreciated.

[mullet]

You need to establish open market value using known facts and circumstances. What value (if any) would the property have had in March 1982 on the basis that it would have to have been sold to the state? Answer that question with a figure, and you have probably got your answer.

[StefanT]

Many thanks!

Do you know by any chance to what extend HMCR challenges such DIY valuations in practice ?

For them it will be a very serious task to check any part of my reasoning without calling Tony Robinson and the Time Team.