Postby simon1 » Fri Jun 27, 2003 2:33 am
The value should have been declared for IHT purposes at the time of the probate tax return. The CGT base cost is deemed to be the amount which was taxed for IHT purposes. Presumably the value of the estate was below the IHT threshold and so no great fuss was made over the value of the property at the time. However this will need to be agreed with the Revenue. They will also look to tax as a capital gain the increase in value fromt he time of inheritance untilthe time of disposal. You may be able to argue that the increase in value is small due to the different market conditions at the time, etc. However on a small gain such as this one would expect the gain to be reduced by indexation and taper to the extent that any gain after the annual exemption would lead to (at most) a small charge. I wouldn't bother taking advice on this - the Revenue will help you with the comp.