We dealt with the capital gains tax on a property that had an interesting mix of inheritance and capital gains.
It is a classic case.
A property jointly owned bought back in the 1970s.
Couple subsequently separate and husband lives elsewhere in early 1980s. They don't divorce.
The wife sadly dies in 2019 and husband inherits her half. Husband also inherits his parents home.
This property was recently sold. There will be capital gains tax as this is the husband's second home. he hadn't lived in it since 1982.
My client had carried out his own calculations and arrived at capital gains tax of £111,000.
The key to this is that the base cost of the property should be 50% of the March 1982 value. This was very small, but also the probate value of the wife's share, is 50% of the total property value in 2019.
Although the seller doesn't receive principal private residence relief, the rebasing value to the probate amount is ultimately very valuable
The result is that the actual CGT is only £47k.
