Am selling house I live in which I half own with my mother although she lives in her own house. Have been told liable to pay about £18,000 apx CGT, as she bought it with my father 13 years ago - I then rented until 6 years ago when he died and half share of house transferred to me. Does anyone know anyway of reducing this tax please?
2007-01-15 05:21:12 · 3 answers · asked by boo 1 in Business & Finance ➔ Taxes ➔ United Kingdom
As I see it you acquired your half share of the house six years ago at probate value. You are now living in the house.
You will only be liable for tax for the period between acquiring it and moving in. Were you renting this house from your parents before your father died? If so then the whole gain on your share will be exempt.
You mother will potentially be liable for the whole 13 years of ownership on her half. If she was living there at any time then private residence relief can be claimed.
More specific information is need to answer the question fully. Hope this gives you some idea as to what information is relevant.
2007-01-16 20:09:31 · answer #1 · answered by tringyokel 6 · 0⤊ 0⤋
Complex issue this one. I assume you have made allowance for CGT relief which I think is £8500 for each person who has a share in the equity of the house. CGT is only payable upon the sale of the house. I have a feeling that an inherited property might be CGT exempt. Use this info carefully as I am not qualified in this field but have researched recently for a similar problem. If all else fails you will need to consult an accountant preferably one who specialises in CGT
2007-01-15 13:42:25 · answer #2 · answered by DEREK M 3 · 0⤊ 0⤋
I'd check this again with your tax office as this doesn't sound right to me. Are you actually living in the house? I'm a little unsure as to whether your parents bought it as a second home while they were still alive and then they rented, and how long you have been living there. I'll keep an eye on this question if you add in some more details - i might be able to give you more of an answer but, at the moment, I can't quite work out if you were renting it out to someone else, or whether you were renting it from your parents
2007-01-15 13:33:32 · answer #3 · answered by gorgeousfluffpot 5 · 0⤊ 0⤋