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Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10458
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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we were gifted a property by my mother 14 years ago. we are

Resolved Question:

we were gifted a property by my mother 14 years ago. we are now considering selling. are there any tax implications? there are four of us.
Submitted: 2 years ago.
Category: Law
Expert:  Aston Lawyer replied 2 years ago.
Hello and thanks for using Just Answer.
My name is ***** ***** am happy to assist you with your enquiry.
I take it that the 4 of you do not live in the property?
Kind Regards
AL
Customer: replied 2 years ago.
None of is live in the property and we all own our own homes.
Expert:  Aston Lawyer replied 2 years ago.
Thanks for your reply.
You all are potentially liable for Capital Gains Tax (CGT) on any profit you have made from your respective one quarter's share.
Basically, when you acquired the property, you are deemed to have received it at the market value. If the market value of the property has now increased 14 years on, this "profit" is liable to CGT.
So, if for example the property was worth £200,000 14 years ago, and it is now sold for £300,000, the profit is £100,000 and you are all then liable for CGT on your £25,000 profit.
Under CGT rules, you all have an annual allowance which is currently £11,100 and you can also use the previous tax years allowance (£11,000) if it has not been used for any other gain/profit you have made on any other chargeable sale.
Therefore on your £25,000 profit, after deducting both yearly allowances, leaves you with a gain of £2,900, taxable at the rate of 18% if you a basic tax payer and 28% if you are a higher rate tax payer.
I hope this assists and answers your question.
You should speak to your Accountant concerning your potential liability.
Kind Regards
AL
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