How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask UKSolicitorJA Your Own Question
UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
62162956
Type Your Law Question Here...
UKSolicitorJA is online now

My mother died in October 2013. Her house had been transferred

Resolved Question:

My mother died in October 2013. Her house had been transferred to my brother and myself approximately 10 years ago. There was a trust set up allowing my mother to live in the house until she died or until she no longer wished to live there. Subsequently after her death, my brother wished to buy my share. The property was duly transferred to him on receipt of half its value. As I do not own any other property and am going to put proceeds in to a property that I will then jointly own, is there any capital gains tax liability on the proceeds from my mothers house? There is no inheritance tax liability and because of the amount of her estate, probate was not required. My brother and I werer trustees, executors and joint beneficiaries to the will

Submitted: 3 years ago.
Category: Law
Expert:  UKSolicitorJA replied 3 years ago.
Hello,

If the property's market value increased from the date of your mother's death to the date you sold your interest to your brother, then capital gains tax would be applicable assuming that you never lived in the property so it was never your main home.

However, you may deduct any legal costs incurred in connection with transferring your interest to your brother and you would have an annual capital gains tax allowance, see here

http://www.hmrc.gov.uk/rates/cgt.htm

Can I help further?
Customer: replied 3 years ago.

Thank you. The property was valued immediately after my mothers death, therefore, it was the current valuation at that time.


 


I assume then from your answer, I am not liable to capital gains tax.

Expert:  UKSolicitorJA replied 3 years ago.
Yes, correct.

All the best
UKSolicitorJA and other Law Specialists are ready to help you