Malcolm Gunn consultant with Squire Sanders & Dempsey discusses the valuation of jointly held properties
Mr and Mrs Grumpy have owned a property which has been let since before 1982. On 31 March 1982 it was worth £100 000 and they sold it last year for £300 000; what is their capital gain ignoring indexation relief? Stupid question you may say; any fool can work that out it's £200 000. Actually no it's not — it's £210 000.
The reason for this is that the base cost of the property is written down by 10% because it was jointly owned. No wonder they are grumbling. In fact the problem gets even worse once indexation is taken into account given that this runs at just over...
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Malcolm Gunn consultant with Squire Sanders & Dempsey discusses the valuation of jointly held properties
Mr and Mrs Grumpy have owned a property which has been let since before 1982. On 31 March 1982 it was worth £100 000 and they sold it last year for £300 000; what is their capital gain ignoring indexation relief? Stupid question you may say; any fool can work that out it's £200 000. Actually no it's not — it's £210 000.
The reason for this is that the base cost of the property is written down by 10% because it was jointly owned. No wonder they are grumbling. In fact the problem gets even worse once indexation is taken into account given that this runs at just over...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
