This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

cgt on a gifted main home

apache999
Posts:1
Joined:Sat Jul 24, 2021 4:51 pm
cgt on a gifted main home

Postby apache999 » Sat Jul 24, 2021 5:02 pm

dear sirs,I was gifted our main and only uk home by my mother who is still alive,the gift was made in sept of 2020 and its value at the time of the ift was 300k,we lived in it for 10 yrs until 2012 and then my mother let it out,so now in july 2021 it is worth about 320k,my question is did I acquire the house at the market value of the house in sept 2021,or was it gifted to me at its value of 139k when my mother purchased it in feb 2003 and di I qualify for any reliefs due to the fact we lived in it for approx 9 yrs and it was let for 9 yrs?kind regards .

pawncob
Posts:4753
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: cgt on a gifted main home

Postby pawncob » Sun Jul 25, 2021 10:08 am

Your mother's gift to you was made at market value at the time (£300k) and a time apportioned PPRR means that c9/18 of the gain is exempt from CGT. 9/18ths is taxable.
Your base cost is the gifted value.
With a pinch of salt take what I say, but don't exceed your RDA

someone
Posts:521
Joined:Mon Feb 13, 2017 10:09 am

Re: cgt on a gifted main home

Postby someone » Tue Jul 27, 2021 11:28 am

Your mother's gift to you was made at market value at the time (£300k) and a time apportioned PPRR means that c9/18 of the gain is exempt from CGT. 9/18ths is taxable.
Your base cost is the gifted value.
I read it as that the OP was gifted the house and now needs to work out the CGT on the gift (which his mother will have to pay). The dates are horribly confused so it's not possible to work out what is going on though - for example "did I acquire the house at the market value of the house in sept 2021" - We aren't even in september 2021 yet.


Return to “Property Taxation”