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Where Taxpayers and Advisers Meet

Land disposal

simpsonite
Posts:109
Joined:Wed Jun 24, 2009 11:58 am
Land disposal

Postby simpsonite » Wed Jun 24, 2009 12:05 pm

Hi there,
My client disposed of a parcel of land in 08/09.

The land was originally purchased by his father in 1981. My Client's father put both their names on the title deeds at that time.
Father died in Dec 2003.

My client effectively acquired sole ownership in probate.

For base cost purposes then - I will use Dec 03 values.

Just like confirmation for on this point.

Thanks
justin

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Land disposal

Postby pawncob » Wed Jun 24, 2009 12:39 pm

How much of the land was included in probate? presumably just the father's half.

The son owned half the property from 1981 (March '82 valuation available) and acquired the other half at probate valuation in 2003.
With a pinch of salt take what I say, but don't exceed your RDA

simpsonite
Posts:109
Joined:Wed Jun 24, 2009 11:58 am

Re: Land disposal

Postby simpsonite » Wed Jun 24, 2009 12:56 pm

yes, my client acquired his father's half on death in 2003.

simpsonite
Posts:109
Joined:Wed Jun 24, 2009 11:58 am

Re: Land disposal

Postby simpsonite » Wed Jun 24, 2009 2:03 pm

So for base cost purposes doesn't the son effectively have a free uplift in value to 2003 MV?
(To replace March 82 value)

So his base cost is the just the total value of land at 2003?

He effectively acquires his father's half share in 2003 at probate value (so no cgt implications at that time)

Peter D
Posts:10668
Joined:Wed Aug 06, 2008 3:37 pm

Re: Land disposal

Postby Peter D » Wed Jun 24, 2009 2:08 pm

The Son has 1/2 the land at the original base price and 1/2 the land at the uplifted base price in Dec 03 on the inheritance. Regards Peter

RAL
Posts:1064
Joined:Thu Oct 30, 2008 12:47 pm
Location:London & Surrey
Contact:

Re: Land disposal

Postby RAL » Wed Jun 24, 2009 2:16 pm

So his base cost is the just the total value of land at 2003?
No.

The base cost should be as commented by Pawncob and Peter.
Cost should be

1/2 of March'82 Value + Probase value of land at 2003. (1/2 of mv at 2003 should be included in probate).
RAL

simpsonite
Posts:109
Joined:Wed Jun 24, 2009 11:58 am

Re: Land disposal

Postby simpsonite » Wed Jun 24, 2009 2:46 pm

Ok thankyou both for clarifying that point for me.


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