Cgt1 disposal consideration amount

Gomango

2009 I bought a property from my parents, I cleared the remainder of their mortgage 180k.

Got a mortgage for 200k paid their mortgage off and used the rest for renovations.

200k* is PPR figure * denoting not full market value.

Parents paid cgt based on 250k disposal. A valuation of 280k was carried out by independent valuer in 2009.

Which figure should be used for disposal consideration. I have been advised the 280k figure.

*Above figures have been altered from real figures for privacy.

gerrybbadd

Gomango wrote: »

2009 I bought a property from my parents, I cleared the remainder of their mortgage 180k.

Got a mortgage for 200k paid their mortgage off and used the rest for renovations.

200k* is PPR figure * denoting not full market value.

Parents paid cgt based on 250k disposal. A valuation of 280k was carried out by independent valuer in 2009.

Which figure should be used for disposal consideration. I have been advised the 280k figure.

*Above figures have been altered from real figures for privacy.

Was this their Principal Private Residence? If so, no CGT liability arises.

However, if not, the tax is only due on the GAIN. So whatever the property was worth when they bought it against what it sold for.

Gomango

Thanks for the reply Gerry.

It was not my PPR.

So to clarify for my cgt1 the property was valued at 280k in 2009 when acquired by me. So 280k is my cost of acquisition.

Sale closed at 270k disposal consideration giving net loss of 10k with No gain due.