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Dear Sir/Madam,
31 March 1982 - The Long and Winding Road
 This week we are told that Sir Paul McCartney and Heather Mills are splitting up after only 4 years. In comparison it is a long way back to March 1982 the earliest date from which chargeable gains are calculated for Capital Gains Tax. …………. Groan
Last month we touched on the new International Financial Reporting Standards. In comparison keeping the 1982 tax base is archaic and seemingly irrelevant after 24 years, indeed far longer than the previous date 6 April 1965 that it superseded.
A clue as to why the government is so reluctant to change this is due to the market conditions at that time:
The Estates Gazette editorial 9 January 1982 was headed “Happy New Year?” Will 1982 see the longest ever corner turned and the recession lifting?” only a small improvement was expected this despite “reassuring noises” from Mrs Thatcher and the Chancellor, Sir Geoffrey Howe.
The Bank’s Base Rate was13½ % having been up to 16% the previous October
Market information snippets
- 3.49 Acres Rectory Lane Banstead sold with OPP for residential development February 1982 for £12,320/Acre
- A shop investment in Worcester Park sold in February 1982 at 11.9% yield
- A factory in Davison Row Croydon let at £3.42 per sq ft, in Byfleet £3.75 psf
- The Swan Centre opens in Leatherhead.
Accountants must be aware of the general background when advising their clients of CGT implications. Client property records, and photographs if possible, are vital.
We as Chartered Valuation Surveyors can help with our market records and experience in valuing property and negotiating – indeed in a previous life Roger was a valuer in the DV’s Office of the Inland Revenue ( now the VO Agency)!
This is part of a regular series of topical articles provided exclusively for accountants by RDN Chartered Surveyors. If you would like further information or add your comments please reply to this e-mail or contact Roger Nelson on 0800 902 0466.
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31 Holmesdale Road, Reigate, Surrey RH2 0BJ
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