Hi Folks. please helpl with a dilemma,
My partner sold her house in 2019 for 165k. It was bought in 1976 for 7k with her husband and they lived together with their two children until their divorce in 1999 whereby, by agreement she borrowed 10k to pay him off and keep the house. Prior to the divorce, the deeds and mortgage had been solely in his name. The house was then let for 14 years from 2004. In deriving CGT and PRR, which of the two scenarios is to be applied: – as one will give a far higher chargeable gain?
1) Time owned 42 year, let 14. Purchase cost 7k (or 3.5k + 10k?). House Sale cost 165k
2) Time owned 20 year, let 14. Purchase cost as (estimated value in 1999) 50k, House Sale value 165k
Any help gratefully appreciated.
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