We purchased a unit, and exchange of contracts was in April 2013, with the purchase price of £403,000 (off-plan). The unit was completed in January 2016. We requested a valuation for the unit to be done on 25 October 2017. The market value was £560,000, with the valuation date back on 6 April 2015. Could this valuation report for rebasing the price help us for capital gains tax (CGT) purposes?
Arthur Weller replies:
The amount that the taxpayer actually spent is the figure used in the CGT computation, pursuant to HMRC’s Capital Gains manual at CG15150. The fact that the asset was revalued later will not make a difference to the computation unless the taxpayer actually spent more money on enhancing the asset.