Time as Principle Private Residence for CGT

S

smcgiff

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My dad is selling a house he originally bought in 1965.

He bought another house in 1986, but kept onto first house. A sister and brother, but not dependant relatives lived in it at varying times since.

As there will be partial relief only for CGT, do we take the residence from 1965 or 1974 when CGT came in? Taking the deemed residence into account (last 12 months) it will either be a 42% relief or 55% relief.

As the property was deemed to be bought and sold as at April 1974 under CGT rules, I'm guessing we cant take into account the time prior to 1974 for time as PPR. Seems unfair, but is this the case?
 
The period before April 1974 is irrelevant so you can ignore it. Use the market value at that date as your cost and acquisition date and work from there.
 
AFAIA, you take the value of the property at April 74. You then apply the [broken link removed]. Don't forget to include your buying cost.

In relation to the period of occupancy it is the time the property was occupied as your fathers PPR plus 12 months.
Period of Ownership 41 years
Period of occupancy 21 plus 1 = 22 years
Period rented 20 years minus 1 = 19

Liable to CGT approx 46.3% as investment property
These amounts are approx. Figures are calc to the nearest month afaik.
 
Do you think occupancy before 1974 counts, asdfg?!!!?

That'd be great if it's the case! :)

I'm confident of being able to calculate the Capital Gain correctly before applying the PPR relief. It's the size of the PPR relief based on relevance of pre-1974 is what I'm unsure about.

As it needs to be revalued at 1974 with a multiplier of something like 7.528 the right 1974 valuation(valuer!) is important! :)

Cheers again!
 
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