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Calculating Capital Gains Tax (rental property)

07/01/2019 14:00:30

My rental property was inherited from my elderly mother in 2014 and rented out for 18 months. I sold it in 2018. The estate agents estimate that it would have been worth between £170,000 - £175,000 at the time of inheritance. Can I use the mid-figure of £172,500 to calculate Capital Gains? Do I need to include their email?
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Re:Calculating Capital Gains Tax (rental property)

07/01/2019 14:21:36
Thanks for your question.

When calculating Capital Gains for inherited assets you use the market value of the property at the time of inheritance or probate value.

You can find further information from the following links:

Capital Gains Tax

Capital Gains manual CG14530

I hope this helps.

This message was edited 1 time. Last update was at 07/01/2019 14:24:51

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Calculating Capital Gains Tax (rental property)

07/01/2019 14:32:12
Sounds a bit late for me to use this service - if I want to meet the deadline of 31st January?
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Calculating Capital Gains Tax (rental property)

07/01/2019 14:37:36
Hi there CarlyD7,

Could you clarify which service you mean please?
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Calculating Capital Gains Tax (rental property)

07/01/2019 14:53:44
This service, via the link you provided:

Checking the market value

HM Revenue and Customs (HMRC) can check your valuation.

After you’ve disposed of the asset, complete a ‘Post-transaction valuation check’ form. Return it to the address on the form - allow at least 2 months for HMRC’s response.
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Re:Calculating Capital Gains Tax (rental property)

07/01/2019 15:09:42
Thanks for your response.

Yes it can take us at least 2 months to check your valuation. You will need to use your own valuation in order to file your tax return by 31 January deadline assuming the capital gain relates to the 2017-18 tax year. You can always amend your tax return if necessary within 12 months from the filing date.

I hope this helps.