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A house was inherited and sold a few months later at a substantial gain. Capital gains tax will be payable, but what acquisition value should be used?
My client inherited the main residence of an elderly relative. Initially he thought about living in the property but ultimately decided not to and sold the house without taking up residence.
He has advised me that the value for probate purposes was £250 000 but it was sold for £300 000 only a matter of months after he acquired it. There are no losses to be set against the capital gain so it seems that a liability will arise but what acquisition value should be used?
I did not deal with the estate and I understand that if the value of an asset has been “ascertained” for inheritance tax purposes then that is the value to be used for subsequent capital gains tax purposes.
But how do I find out whether the value has been ascertained? My client seems to think that the actual...
