Hi
Hoping someone can help shed some light on how to calculate the correct amount of CGT we have to pay on a property recently sold in Italy .
My Italian wife who is a UK tax resident has recently sold a property in which she was the bare(nuda) owner and her mother the usufruct. As her mother is 69 , the split of the sale price was 45% to her mother and 55% to her. ( this link shows how this is calculated "http://www.ortalloggi.com/en/what-is-the-usufruct-and-how-is-it-calculated-for-italian-law/" ) .
As my wife lives in the UK she will have to pay capital gains tax on her portion, however i am unable to find anywhere information on what % split we should use on the purchase price of the property which was in Dec 2003. Should we apply the same split , or is there an assumption that the bare owner is the full owner from a purchase view? The only information i have found from many hours of searching is an article giving a similar example in France ( https://www.russell-cooke.co.uk/media/1505/usufructs-part-1-uk-capital-gains-tax-private-client-business-issue-5-oct-2011.pdf ) where they state that for UK CGT it would be easiest to use the same split on the purchase price to derive the CGT due as if the split changes through out the period of ownership , you would have to try and work out the value of the property at points in time which retrospectively would be impossible to find out.
Any help in this matter would be greatly appreciated !
Kind Regards
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