5th April 2015 Property Valuations for CGT?

5th April 2015 Property Valuations for CGT?

9:27 AM, 19th February 2021, About 5 months ago 17

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I am non-UK resident and need to get a retrospective valuation of a UK house as at 5 April 2015. This is because for CGT purposes, the UK tax law says I can use the value of the house as at 5 April 2015 as my “acquisition cost”, instead of the cost I paid for the house in 2003.

I was about to hire a RICs valuer – they cost from £480 upwards. Then I saw Hometrack does an automated valuation (as at 5 April 2015) for £19.95. I believe Hometrack also provides Zoopla with automated valuations.

Has anyone used Hometrack for their CGT valuations? I am not sure whether their valuations are worth anything and whether the HMRC will accept it? I know Property 118 has a webpage recommending Hometrack, but just wondering what people’s experience of using an automated calculation over a RICs live valuation? I must admit, the Hometrack cost savings look attractive, especially if I do 4 or 5 valuations…

Many thanks

Lional



Comments

by Neil Patterson

9:33 AM, 19th February 2021, About 5 months ago

Hi Lional,

We use Hometrack all the time for Tax Consultation clients and ourselves and we would not use them if they weren't useful 🙂

Please see " >> https://www.property118.com/tax/property-valuations-for-tax-planning-purposes-for-just-19-95-each/

by Jon Pike

11:35 AM, 19th February 2021, About 5 months ago

I must be missing something here.

Presumably the value of a property on 5 April 2015 will almost certainly be higher than 2003. Surely HMRC are not allowing you to lose that increase and reduce the amount of CGT you pay.

Grateful for advice as this is particularly relevant for me at the moment.

by Olls63

12:08 PM, 19th February 2021, About 5 months ago

It probably isn't helpful if there have been substantial capital improvements since you bought the property.

by DP

12:26 PM, 19th February 2021, About 5 months ago

could someone explain why a non-UK resident is able to use a valuation commencing 2015 whereas a Uk resident has to use the acquisition value?

by Ana Martinez-Fernandez

12:44 PM, 19th February 2021, About 5 months ago

Hi, I'm not a tax adviser, so please check it yourself carefully, but I believe that you can also elect to calculate the capital gain using the "straight-line time apportionment" OR the original cost of the property (this is called "the retrospective basis").

by Olls63

13:02 PM, 19th February 2021, About 5 months ago

Reply to the comment left by DP at 19/02/2021 - 12:26
Because before 2015 non-residents did not pay CGT on property disposals if they met the non-residency rules.

by Olls63

13:09 PM, 19th February 2021, About 5 months ago

Reply to the comment left by Ana Martinez-Fernandez at 19/02/2021 - 12:44
HMRC CG73795 and CG73798 refers to the retrospective basis of calculation.

by Neil Patterson

13:33 PM, 19th February 2021, About 5 months ago

Hi Everyone please see >> https://www.property118.com/uk-landlords-flocking-portugal/

"Taking the UK/Portugal convention as an example, if you are a resident of Portugal but receive dividends from the UK, then the UK has the power to tax them under article 10, although it does not do so if the recipient is not a UK resident. On the other hand, Portugal will not tax such dividends in the hands of a NHR either, because the UK has the ability to tax them under the convention but doesn’t do so. Accordingly, the non-habitual resident of Portugal may receive dividends from UK sources completely free of tax. Similarly, there is no CGT to pay in Portugal on capital gains realised in the UK and HMRC only tax capital gains made after April 2015 for non-residents.

So, for landlords who have already incorporated their rental property businesses, they could take advantage of the NHR scheme and pay no tax at all on their dividend income.

For landlords who have not incorporated, perhaps due to having “latent gains” (mortgages exceeding base costs), the NHR scheme also provides an opportunity to re-set those base costs at the April 2015 value of their portfolio."

by Beaver

14:08 PM, 19th February 2021, About 5 months ago

Reply to the comment left by Neil Patterson at 19/02/2021 - 13:33
I was aware that Portugal gives UK citizens an incentive to go and spend their pension pots in Portugal, but I wasn't aware that you could receive dividends from UK companies there tax free. On Monday channel 4 are running a programme called "Dispatches: Britain's £400bn Covid bill: who will pay?"

https://uktvscene.com/dispatches-britains-400bn-covid-bill-who-will-pay-channel-4-22-feb-2021/

Working online from the sun or retiring in the sun is looking increasingly more and more attractive 🙂

by DP

14:19 PM, 19th February 2021, About 5 months ago

Reply to the comment left by Beaver at 19/02/2021 - 14:08
No doubt the answer to your first question will be UK landlords and the second, not sure I want to fry in temperatures in excess of 40 degrees or where ever global warming gets us, I am English and will stay and keep fighting, well for a bit longer anyway.

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