Capital Gains Tax Implications- Disposal of non PPR property

My parents bought a house together in 1979. My mam left my Dad in 1981 and has lived elsewhere ever since hence the house has not been her PPR since then. My Dad passed away last year at which time my Mam inherited his share of the house. (should note that even though she moved out of the house, they were still married and her name remained on the deeds of the house).

My mam has now sold the house and is liable to pay CGT on the gain. My question is what is the base cost for disposal of the house? Is it the purchase price indexed from 1979 OR is it half the purchase price indexed from 1979 plus the market value of half the house at the date of inheritance from my Dad?? The latter would imply that she has only owned half of the house from the date of death of my Dad which was the case

Any help on this would be appreciated? I have looked up the revenue website but can't find anything of relevance here. Also if anybody knows if there is a CGT helpline i could call on this can you let me know?

Thanks

misstealeaf said:

Is it the purchase price indexed from 1979 OR is it half the purchase price indexed from 1979 plus the market value of half the house at the date of inheritance from my Dad?

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The latter, though you'd be well-advised to get professional help on this if the potential tax liability is in any way sizeable.

Thanks T McGibney. Yea might seek some advice or else fill in the expression of doubt section on the CG1 form and give full disclosure and let revenue come back to us if i have mis-interpreted incorrectly.

Again if the numbers are in any way sizeable, you'd need to be very careful as even a minor error in computing reliefs etc could have significant consequences. CGT works on self-assessment which leaves the onus on the taxpayer to get it right and you don't want either to overpay CGT or leave yourself open to penalties if underpaid. The Expression of Doubt section is there to highlight any genuinely technical matters arising in given situations, not the user's uncertainty on how to complete the computation and return.

I'd agree with Tommy, you would be crazy to submit the return without getting advice.