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JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 11151
Experience:  30 years as a practising solicitor.
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my mother transferred her property to my brother and I in July

Resolved Question:

my mother transferred her property to my brother and I in July 2012 and unfortunately in October 2012 was admitted into a nursing home. The council said that we had to pay for her care so we had to sell the house which we did in January 2014 and received £63,697 each. Since September 2014 we are paying £6000 each per annum towards her care costs. Where do I stand with regard to Capital Gains tax please
Thanks
Jan Joseph
Submitted: 2 years ago.
Category: Law
Expert:  JGM replied 2 years ago.
Thank you for your question.
You will Have a potential liability for capital gains tax based on any increase in value between July 2012 and January 2014. So you have to know whether the property has in fact increased in value during that period.
However, there may have been no increase in value and in any event you each have your annual allowance of £11000, ie a total of £22000 increase before you start to pay CGT assuming you haven't any other CGT liabilities in the tax year in which the property was sold.
Happy to discuss further.
Please leave a positive response so that I am credited for my time.
Customer: replied 2 years ago.

Thankyou.....just to confirm the capital Gains Tax would only be on the difference between what the house was worth when Mum gave it to us and what it was sold for?

Expert:  JGM replied 2 years ago.
Yes it would.
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