Capital Gains Tax – Back To The 80’s
Sibbett Gregory are often called upon to provide 1982 market values for both residential and commercial property for Capital Gains Tax purposes.
Capital Gains Tax is due on the difference in value of an asset at the date of disposal from when it was purchased (or from 1982), whichever is the most recent. Assuming that the property was owned before April 1982 the tax liability will be based on the value of the property as at 31st March 1982. The chargeable gain is then the difference between the base value in 1982 and the current value.
The need to obtain 1980s evidence can be a challenge depending on the property type being considered. Sibbett Gregory are well positioned to provide such advice with a wide range of local and national data collated to provide a useful bank of evidence together with a good archive of local evidence and published articles specific to the economy at that time. It is essential therefore to use a local surveyor with the knowledge and specialism in the property type.
In order to determine the tax liability HMRC will require the market value of that property on the 31st March 1982. CGT is not usually payable on property’s where it is your main residence due to Private Residence Relief. The valuation is based on the assumption the property is largely the same now as it was then unless specific renovations and alterations are evident.
If you have owned your property since before April 1982 our RICS Registered Valuer can assist with Capital Gains Tax valuations in order to calculate your chargeable gain. Please contact Anne Brennan on 01202 661177.