CGT tracing on shared property

[raybarrow]

Hi Folks,
Inherited house sold. House was a three way split on the death of our father (2008). Elder brother died later (2014) and his share passed to his daughter, our niece. So far so good.

I did my CGT submission on line and paid it, quite straightforward. My brother is in the process of doing his.

My brother and my CGT submission details (sale price, 'purchase' price, expenses) will be the same.
I know nothing about our Niece's finances but her CGT details will be different as her start date for third ownership was when her dad, our elder brother, died (2014).

As the CGT submission contains the address of the property and the fact that it's noted as a three way split on the CGT submission, do the HMRC follow up and make sure they get three submissions for that address and 'spot the difference' in the details or is each CGT submission treated separately?
Or am I reading too much into this? Stress I can do without.

Ray.

[DrFfybes]

Hi Ray,

First thing to consider is that your niece's tax affairs are hers, not yours. You cannot be held liable for what she chooses to do or not do. All submissions are seperate, although if I was her I wouldn't want to raise anh flags at HMRC. As you say, it was fairly simple, all she needs is a 2014 valuation using the figure used on her father's Probate submission (or possibly simply "pro-rata"-ing your gain?).

I will say that when I sold a BTL a few years ago I got a letter from HMRC about 18 month later saying their records showed I'd disposed of a property that "wasn't my Primary Residence" (or perhaps it was "one I'd never lived in") and I hadn't paid CGT on it. There was the option to igonre the letter if there was not CGT due (which there wasn't), however I decided that was not a wise idea and replied informing them of the situation.

Incidentally, when I sold the house I owned before we got married, there was CGT due, but HMRC never contacted me, perhaps as it was paid in my SA.

So yes, at some point HMRC will probably catch up with her, but all you can do is tell her what the rules are.

Paul

[raybarrow]

Hi Paul,
Yes, she is an adult and responsible for her own affairs. She is also niece and has had a 'difficult' life, although she seems to be sorted now, apart from having a possible brain tumor investigated - life's a bummer.
Born in the UK but lived a lot of her life in the Isle of Man. Our brother, her dad, went to live with her as his health failed and he died in the IoM (no idea how their tax system works - probably makes no difference). Her partner turned out to be abusive and we lost track of her. Turns out she moved back to an out of the way place in the UK and changed her name, officially, to stay under the radar avoid said partner tracing her.
I'll have to quiz her, gently, about her tax status, does she do SA, have a massive share portfolio, pension etc.
As I said we lost contact then had intermittent contact but seems she is now ok, settled, just turned 50, has a new partner etc. just that health issue to resolve.
Hopefully clearing up the sale of the inherited house and getting her CGT liability sorted is one less thing for her to be thinking about.
We don't always realise how good a 'boring' life can be.

Cheers,
Ray.