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Where Taxpayers and Advisers Meet

CGT computation forms when half property was sold and repurchased

dotto
Posts: 47
Joined: Wed Aug 06, 2008 3:16 pm

CGT computation forms when half property was sold and repurchased

Postby dotto » Sat Aug 24, 2019 11:41 am

I'm hoping someone is able to advise me complete my CGT forms. I sold a seaside flat on 16 8 19 which I had intended using in my retirement, but has been rented out on AST since purchase, and am attempting to prepare my CGT forms for submission next year. The story is
Purchased flat for £50,000 in Feb 2000
Sold half to partner for £67500 in March 2008 (had mortgage company valuation)
Repurchased ex partners half for £67500 in 2014 - tax done by an accountant at that time.
Sold flat last week after struggling with it on the market for 18 months for reduced figure of £90,000. (I needed to sell as my mortgage term ended on 31 3 18 and they kindly gave me 12 months grace initially and then extended this by a further 12 months so getting pretty desperate).

My question is that the computation asks for date of purchase, sale price, incidental selling costs etc. There are in fact two purchase dates ie the remaining 50% purchased in 2000 and the repurchase of the other half in 2014. Should I complete two separate computation sheets and then marry up the figures on the summary sheet.
I know I can't submit to HMRC before the next financial year but want to put the figures together whilst everything is still fresh in my mind.

I can't see how I can do the computation without treating the two halves as 2 separate items. I would appreciate any help.

someone
Posts: 383
Joined: Mon Feb 13, 2017 10:09 am

Re: CGT computation forms when half property was sold and repurchased

Postby someone » Sun Aug 25, 2019 11:44 am

I think your base cost is 25000+67500, i.e. 92500 and you've made a loss.

But the sale to ex-partner might have to be at mkt val for the base cost calc. Did you have a valuation done at the time?

someone
Posts: 383
Joined: Mon Feb 13, 2017 10:09 am

Re: CGT computation forms when half property was sold and repurchased

Postby someone » Sun Aug 25, 2019 11:48 am

I think your base cost is 25000+67500, i.e. 92500 and you've made a loss.

But the sale to ex-partner might have to be at mkt val for the base cost calc. Did you have a valuation done at the time?
For sale to read purchase from.

maths
Posts: 7562
Joined: Wed Aug 06, 2008 3:25 pm

Re: CGT computation forms when half property was sold and repurchased

Postby maths » Sun Aug 25, 2019 4:12 pm

When you refer to "partner" do you mean married partner; civil partner or co-habitee?

dotto
Posts: 47
Joined: Wed Aug 06, 2008 3:16 pm

Re: CGT computation forms when half property was sold and repurchased

Postby dotto » Mon Aug 26, 2019 11:57 am

Thank you for your responses.
1 A valuation was carried out in 2008 when 50% was sold and was £135,000 (mortgage company valuer).
2 It seems there was no further valuation done in 2014 but I can't find any paperwork - only a brief spreadsheet I did at the time showing costs ie £Lender £199 admin fee (I took on the mortgage that had been shared), Mortgage agent fee, sol fee. (Can't check with sols as they have been shut down).
3 I had tried to sell the property on the open market in 2018 as my mortgage term was ending and the flat was valued at £135,000 by Reeds Rains. It didnt sell and there was little interest but that is the last full valuation it was given. Will HMRC accept that valuation for 2014. I then tried it with an online auction which was a disaster - priced at £110,000 with reserve of £120,000 and £6,000 fee to seller - no interest at all. At this stage the "cash buyer in 28 days" style companies weren't interested. Eventually the tenant decided to purchase the flat for £90,000 as he knew it was a bargain.
3 Re partner status - non live-in boyfriend of 13 years up to 2014 - boyfriend odd term for a 70 year old but describes the relationship I suppose.

I have done two computation sheets in draft to show how I have arrived at the figures on the summary sheet and yes I have made a loss. So if I submit two computation sheets with a brief explanation as to why, and also explain about the 2014 valuation not being carried out, but valued again in 2018, does that seem acceptable to HMRC.
Thank you for your help.


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