Hello,
First of all I appreciate all the help people have given in relation to my position i am just trying to figure everything out with the figures i now have which are final.
1: - Property purchase price £72,000 (1986) My mother & father
2: - Probate value of property £250,000 as of (2007) passed to mother
3: - Mother gifts 50% share of property to son in 2010 (Both mother & son continue to live at the property)
4: - Both mother and son move out of the property in 2016 and property become buy to let
5: - Mother wishes to transfer remaining 50% to son i.e me making me 100% owner - Value of whole property as of Feb 2020 confirmed at £550,000. Value of mother 50% share which she is planning on transferring to son given as £233,000 by surveyor.
please can someone confirm if the calculations below is correct for my mothers CGT calculation
1: - Half of original purchase price =£36,000- Half of £72,000 (1986)
2: - Half of inherited share as of probate £125,000 - Half of £250,000 (2006)
Base costs = £161,000
3: - Transfer of remaining 50% share (£233,000) by mother to son in 2020 - Base cost = £72,000
4: - Gain of £72,000 x 360 Months (Occupation for PPR) DIVIDED by 396 months (Ownership for PPR) = PPR relief of £65,454
5: - Gain after PPR relief = £6,546
6: - Letting relief covers gain of £6,546
= No CGT to pay
if someone is able to confirm the above i would be so grateful.
Many thanks
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