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Where Taxpayers and Advisers Meet

Selection of cost method for CGT calculations

maws
Posts:4
Joined:Wed Aug 06, 2008 3:02 pm
Selection of cost method for CGT calculations

Postby maws » Mon Jun 01, 2020 8:51 pm

There have been so many changes to the possible choice of property cost for CGT purposes that I am now confused. I thought the latest was that a 5th April 2020 valuation could be taken... or was it 5th April 2017 or 8 ...... or original cost or some other method.
Can anyone enlighten me?
Thanks

jerome.lane
Posts:237
Joined:Mon Aug 12, 2019 8:41 am
Location:Sandhurst, Berkshire
Contact:

Re: Selection of cost method for CGT calculations

Postby jerome.lane » Mon Jun 01, 2020 10:38 pm

I’m not sure that makes sense! Can you be more specific?
Jerome Lane
Tax Adviser
Telephone: 07943 005902

pawncob
Posts:5097
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Selection of cost method for CGT calculations

Postby pawncob » Tue Jun 02, 2020 11:32 am

https://www.gov.uk/government/publications/land-and-leases-the-valuation-of-land-and-capital-gains-tax-hs292-self-assessment-helpsheet
With a pinch of salt take what I say, but don't exceed your RDA

maws
Posts:4
Joined:Wed Aug 06, 2008 3:02 pm

Re: Selection of cost method for CGT calculations

Postby maws » Sat Jun 06, 2020 12:30 am

Property cost 600,000 in March 2010
At 5/4/2018 valued at 900,000
Say a sale takes place in 2020/2021 what are the different results for using different costs?
Assume lived in from April 2010 to December 2013

bd6759
Posts:4267
Joined:Sat Feb 01, 2014 3:26 pm

Re: Selection of cost method for CGT calculations

Postby bd6759 » Sat Jun 06, 2020 2:18 pm

The gain is the selling price less the allowable expenditure. That is the definition of gain.

There are no provisions to arbitrarily include a valuation at a random date.


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