Re: CGT on land held as joint tenants (2)

[totalsparky]

Good afternoon,
I would like some help with the CGT calculation with my current scenario.
I own a small plot of land with a garage on it, it was originally owned as Joint tenants (50% share each) with my Mother who passed away in January 2016
Her share has passed to me and now I'm the sole owner.

We originally purchased the land for £15,000 in 1999 and I now intend to sell it for £100,000
My annual exemption would be £11,500
Solicitors and Estate Agents fees would be £3,200
Improvement works would be £3,000
And I’m a higher rate tax payer.
I suspect my Mothers 50% would be liable for a different calculation to my 50%.

The Probate value was between £125,000 & £150,000 from two valuations. The valuers assumed the land may have been suitable for a domestic building project, but this was rejected by the local authority, hence the drop in the sale price to £100,000

[pawncob]

Based on your figures there's no CGT due.
Your cost was £7,500.
Probate value £140,000 (say) Total cost £147,500

Sale Value £100,000 less £3,200 and £3,000.= £93,800 Loss 53,700.

If probate value is for the whole (not half) then it's £7500 + £70,000 = £75,700 Gain £18,100 less £11,500 =£6,600 taxable.