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JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 11418
Experience:  30 years as a practising solicitor.
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Good afternoon, I have a question about Capital Gains Tax.

Resolved Question:

Good afternoon, I have a question about Capital Gains Tax. I co-own a house with my sister where my father has lived as a dependent since 2001. He does not pay rent on the property but makes a contribution to the monthly contribution to the mortgage payments. We are looking to sell this property and I would like to know where we stand re capital gains tax. As I am a housemaster at an independent school my own accommodation comes with my job. I do also own a second property with my wife which is a buy-to-let. Any advice most welcome please.
Submitted: 2 years ago.
Category: Law
Expert:  JGM replied 2 years ago.
Thank you for your question.
You have to take the value of the property when it was acquired by you and your sister and deduct that from the sale price. That is the gain for tax purposes.
You and your sister each have an annual personal allowance to set off against the gain. That is currently £11,100 per person so you can double that up as there are two owners. Divided by two gives you the gain for each of you. If you are a higher rate tax payer you pay capital gains tax at 28%. You are a lower rate taxpayer you pay capital games tax at 18%.
I hope this helps.
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Customer: replied 2 years ago.
Thanks for your answer. Given the circumstances as noted above I was really interested if there is any circumstance by which we can avoid cgt.
Expert:  JGM replied 2 years ago.
No there isn't, I'm afraid.