Establish Base Cost for CGT

W

willalex

Registered User
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My Father & his Sister owned equal share of 10 acres.

When my Aunt Died 10 years ago (2007), I inherited her 50% share.

Therefore I became joint owner with my father.

My father died last year (2017), and I then inherited his share, now full owner,

I want to give my son 1 acre at a nominal price for him to build a house.

I know I have to apply market value for the sale/gift.

But how to I work out the base cost?
 
If inland revenue affidavits were filed in respect of the 2 estates, these should value the assets in the estate.

Likewise, if inheritance tax returns were filed for your respective inheritances, these would value each inheritance you received.
 
torblednam said:
If inland revenue affidavits were filed in respect of the 2 estates, these should value the assets in the estate.

Likewise, if inheritance tax returns were filed for your respective inheritances, these would value each inheritance you received.
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Just make sure those valuations are justifiable. Sometimes they're clearly way off and a retrospective revaluation is necessary. Consider getting professional advice if the amounts involved appear sizeable.
 
T McGibney said:
Just make sure those valuations are justifiable. Sometimes they're clearly way off and a retrospective revaluation is necessary. Consider getting professional advice if the amounts involved appear sizeable.
Click to expand...

Thanks but CGT, Do I take value of 50% inherited in 2007 and add that to 50% valued in 2017, that is have two different base costs
 
For a part disposal, I understand I use the following formula:

C x A
A+B

A. sale proceeds... I know the figure
B. Value of remaining portion....I know the figure
C. Cost ?

Inherited 50% in 2007 only
Inherited other 50% 2017

"C" is what I am trying to work out.
 
Might also be worth checking if the exemption outlined on the following page [see 'Transfer of a site from a parent to a child' at bottom of the page] can be availed of:

[broken link removed]
 
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