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Posted Sun, 28 Jan 2024 23:22:00 GMT by
Good afternoon, I inherited a property in the Czech Republic from my father who passed away in March 2020. I want to sell it and buy a flat in the UK. The estimated capital gain on the property is £46k. I would like to ask about: 1. How do I determine the value of the property upon my father’s death? The valuation that I have is based on the purchase price from Aug 2019, half a year before his death and I believe the price increased quite significantly from the date of the purchase to the date of his passing. 2. Also, as part of the inheritance settlement, I inherited the property but I had to pay a significant cash settlement to the other 2 parties (inheritors). It was a condition of the inheritance and it was written in the document. I do not believe that can be used in the capital gains calculation, however, as that settlement was about £20k, my real gain is MUCH lower. Would that be considered within the cap gains calculation? 3. What document do I need to provide for the valuation of the property at my father's death? Can I use Czech valuation experts from the official body of the experts and use that as evidence of the valuation as of my father's death? 4. If I Pay a Czech capital gains tax of 15% (which I believe I will not pay due to the exemption mentioned below), will I pay only the difference (13%) in the UK? Some additional information. I am a higher-rate tax payer. I am a tax resident in the UK. The property is in the Czech Republic. My father was a tax resident in Czechia and he was Czech. I wish to bring the proceeds to the UK. I do not have any capital losses. The tax due in Czechia is 15%, however, most likely I will pay 0% as the Czech law allows a capital gains exemption if you plan to use the proceeds to purchase a primary residence (including in the UK). Thank you!
Posted Wed, 31 Jan 2024 12:14:24 GMT by HMRC Admin 19
  1. You would need to contact an estate agent to obtain valuations of similar properties that were sold in March 2020 to get this.   
  2. As you inherited the property solely, no Inheritance Tax can be used to offset any gain.    
  3. If no probate is showing this, then something supplied by the estate agent, on headed paper, would suffice.   
  4. The UK does not have this exemption and you will be liable for Capital Gains Tax on any gain above the annual exempt amount.
Thank you.
Posted Sun, 11 Feb 2024 16:08:37 GMT by
I have spoken to multiple estate agents and they do not have a database of sold flats and the selling price. They only have access to the data (sales) they made. I have therefore reached out to a government-approved valuer and engaged with them to provide me a valuation report as of March 2020. Would that suffice for point no. 1? I
Posted Wed, 14 Feb 2024 11:54:53 GMT by HMRC Admin 21
Hi Jerry,
Yes it will.
Thank you.

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