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Where Taxpayers and Advisers Meet

Notifying HMRC of an asset sale exceeding x4 CGT allowance

cb4fwh
Posts:1
Joined:Tue Aug 09, 2022 12:43 pm
Notifying HMRC of an asset sale exceeding x4 CGT allowance

Postby cb4fwh » Tue Aug 09, 2022 12:54 pm

Afternoon,

About 18 months ago, I moved my in-laws into a bungalow after my father-in-law lost this leg to diabetes. Over the last 18 months, I have been renovating their previous property as it was in a bad state of repair. My father in law is registered as disabled, but the exemption period remains 9 months rather than 36 months as he owns both the bungalow and the house. The house is now on the market, and sold subject to contract.

Once private residence relief has been considered (as of today), there is a CGT gain but this is circa £5.5k (below the annual exemption amount).

Neither of my in-laws have previously been registered for self-assessment.

Q. hmrc.gov.uk suggests that I need to register both of them for self-assessment given that the asset was sold for more than 4 times their allowances, even though there is no gain. Have I understood this correctly?

Thanks :-)

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