Help with CGT calc

[eiwob1]

Hi I'm not sure if this is the correct area on this site but I would be grateful for some guidance on a calculation. I have done some research but some of the information is not very clear and I'm concerned if I'm going down the wrong avenue.

My issue is I bought a property with my father in 1990 and lived with him for 10 years until 2000. He died in 2011 and I inherited the property and moved back in. And I'm in the process of selling it. The property was bought in joint names not tenants in common.

What I'm trying to establish is. For 16 years I lived in the property, but from 1990 until 2011 when my father died I believe I would only be subject to 50% gain. But I lived in the property from 1990 to 2000 so do I start the gain from 2000 when I moved out.

My understanding of the way calculation is done is. Total gain x period of occupation (in months) divided by total period of ownership (in months)

Many thanks in advance for your help in this matter.

[bd6759]

The gain is the difference between the sale price and (half the original cost plus half the value in 2011).

The gain is apportioned as you suggest: occupation months/ownership months.

[eiwob1]

Hi bd6759

Thanks for your reply
So My understanding of the calc is if we purchased the property in 1990 for example to make it simple £50,000 and the value at 2011 was £100,000 the calculation to 2011 would be £25,000 purchase for me and £50,000 value at 2011 so my gain from 1990 would be £25,000. What happens to the 10 years I occupied from 1990 to 2000 do I get relief for those years.

Many thanks

[bd6759]

No. That is not your gain. There is no gain in that scenario because you haven't sold it.

In that scenario your costs are (50,000/2) + (100,000/2) = £75,000. The gain will be whatever you sell it for, less £75,000.

The 10 years are deducted from the gain using the formula.

[eiwob1]

Hi BD6759

Thank you very much for replying to my post

Sorry to come across as a bit dense but calculations are not my greatest attribute. I will be seeking an accountant once I have sold the property. I just want to establish how this type of situation is looked at by revenue.

So in my case I lived in property with my late father from 1990 to 2000 and he died in 2011. I moved back in in 2011.

Going back to my original example. If we purchased the property 1990 for £50,000 and I moved out in 2000, do I disregard those 10 years and work out the actual value of the property when I moved out in 2000 and calculate any value up until my father died in 2011. And from then any increase in value until the property is sold.

I have seen other demonstrations when working out relief when residing and I believe it to work this way. For example if my gain when the property is sold after deducting costs and allowances is £100,000 to work out resident relief I would calculate how many months I was at the property and in my case 120 months from 1990 to 2000 and 72 months form 2011 to 2018 although I get 18 months (210 months total) added in for the end period. So the calculation would be £100,000 x 210 / 336 would come to £62,000 which would be my residential relief. I take that of the £100,000 and that will be my gain.

I note the revenue use months when calculating so my actual time of residence may not be fully accurate ( I have used full years). Given my residency has been sporadic how do I. without the correct paperwork show the revenue what actual dates I was residing with my father.

Many thanks Again

Mike