Dear Friend,Hello and welcome. Thank you for providing an opportunity to assist you.
Yes, it would be perfect to say that you all have made a Capital Gain as you inherited your property. Now, let me try and throw some light on the extent of your capital gain.If you sell the property without having made it your own home, there could be CGT to pay, and this will be based on the increase in value between the date of death and the date when you sell.
Having said this, when your Aunt passed away in February 2015, the value of the property was 320,000 (160,000-80,000-80,000). This would form the basis of your calculation of Capital Gains Tax.Now, you sold this property at 400,000 in February 2016. You will take into account NET Proceeds. i.e. 400,000 minus 8000 of costs, i.e. NET 392,000.
The DIFFERENCE i.e. 392,000 - 320,000 (Value at the time when you inherited the property) would attract the capital gains in the proportion of the amount received by you all three.
For example, So far as your father is concerned, it would be 196,000 minus 160,000 i.e. Capital Gain of 36,000. You received "X" amount from which you will deduct YOUR COST i.e. 80,000 from that and that will form your capital gain and so on.
The point I am trying to drive home is that you pay CGT when you eventually sell the home, and this will be based on the increase in value between the date they gave you the property and the date you sell.
CGT would be 18% in case if you are a standard rate tax payer or 28% if you are a higher rate tax payer.
I am sure this would help.
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