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Where Taxpayers and Advisers Meet

CGT, Private residence relief from 1976 or 1999?

5771mark
Posts:1
Joined:Sun Jan 26, 2020 4:33 pm
CGT, Private residence relief from 1976 or 1999?

Postby 5771mark » Sun Jan 26, 2020 5:05 pm

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.

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

Re: CGT, Private residence relief from 1976 or 1999?

Postby pawncob » Mon Jan 27, 2020 12:20 pm

It's been her PPR since she bought it, and if it was transferred to her before the divorce, she inherits her husband's share of the cost. So cost is £7k plus £10k purchase price.
With a pinch of salt take what I say, but don't exceed your RDA


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