Market valuation

[Dodgydave]

With 3 siblings, I acquired a share of my family home when my father had to go into a care home in 2004. MY siblings each agreed to accept a £21 000 payment for me to buy their share. I then planned to renovate the property (in a very sorry, chilly state) and rent it. This is exactly what I did. However now, I plan to sell the property which will necessitate a CGT declaration. For this reason, I need a 2004 market value valuation for the property, which wil satisfy HMRC.

Can anyone advise on this.

Dave

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[someone]

With 3 siblings, I acquired a share of my family home when my father had to go into a care home in 2004. MY siblings each agreed to accept a £21 000 payment for me to buy their share. I then planned to renovate the property (in a very sorry, chilly state) and rent it. This is exactly what I did. However now, I plan to sell the property which will necessitate a CGT declaration. For this reason, I need a 2004 market value valuation for the property, which wil satisfy HMRC.

Can anyone advise on this.

Dave

.

It's not exactly clear what happened here - why did you "acquire the share of the family home when your father went into a care home". Did you (and your siblings) buy it from your father (via some rather convoluted transactions it appears)?

But on first glance, I cannot see why HMRC could object to a valuation of 84000 for the 2024 figure as it appears you bought out your three siblings (what I assume was 3/4 share) for 63000.

But, of course, there could either be gift elements from siblings to you or you could have "bought them out" at an overvalue to allow your father to have adequate care.

It will likely depend very much on what really happened in 2004, but unless there's some very good reason why 84K isn't the right number or approximately correct, I can't immediately see how HMRC would have any grounds to challenge it.

One of the things that HMRC will likely look at if they look at all (and why I'm a bit confused by your description) is whether there were crystalized CGT liabilities in 2004. If you and your siblings already owned the property in 2004 then there will have been potential gains from whenever they acquired their shares. But if this was really your father saying "I'll sell you four my house for 84K to find my care home", that was a fair value with no significant gift element, but actually you paid the full 84K and the other three paid nothing, then 84K sounds like the correct market value (there maybe a 10% adjustment as part shares are usually valued lower than the same percentage of the whole but I'm not sure if that could apply in this case or not)

[pawncob]

It also begs the question of whether CGT was declared on the siblings' sale. If it was, then the value is established.
The OP's question is somewhat ambiguous. Was the property gifted by the father? If so IHT may be relevant.

[pawncob]

Misread date. Ignore second line.