CGT Calculation

[mickeyg]

My 80 year old mother has just sold a lock-up garage which she used for housing her car at night. Her only other income is the OAP. My question is does she have to pay CGT on the sale of the garage. If yes, how do I get a cost base for the said garage to enable the Capital Gain to be calculated as it has never been formally valued previous to the sale?

Thanks,

 

[Ham Slicer]

The fact that she is an OAP is irrelevant.

She may be able to claim principal private residence relief - but this will depend on a number of factors, including was the garage attached to the house. Did it represent part of the house/property? If so, no tax may be due.

If it's completely separate it's unlikely that PPR can be claimed and tax will may due on the profits.

To calculate the gain you need to work out what it cost to purchase. If you don't know an auctioneer will be able to get you a valuation. It's important to note that if it was purchased/acquired pre 1974 - you should get a valuation at April 1974 and this will be your base cost.

Finally, I would advise getting some professional advice on this matter before proceeding as the above is a quick summary.

Best of luck