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Buachaill
Buachaill, Barrister
Category: Law
Satisfied Customers: 10626
Experience:  Barrister 17 years experience
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I have just sold a property which was inherited from my father,

Customer Question

i have just sold a property which was inherited from my father, I understand I may be liable for Capital gains tax. The property when inherited (between my brother and myself) was a going concern (supermarket.) Since then the business has ceased and the property was empty for over a year. The valuation in probate (Ten years ago) £180,000. We have just sold this property for £205,000.Can you give some guidance please
Submitted: 1 year ago.
Category: Law
Expert:  Buachaill replied 1 year ago.
1. There will be little or no CGT payable here. firstly, CGT is only payable on the uplife or "gain" on the difference in value between the £180,000 at which you inherited it and the £205,000 at which you sold it (less any sale costs). So the uplift or gain was only £25,000 at the very most. Secondly, both yourself and your brother have an annual allowance of £11,300 each. So you have £22,600 of an annual allowance between the two of you. So the maximum chargeable gain is only £2,600, which if you something like estate agency fees would mean there was no taxable gain at all.
Expert:  Buachaill replied 1 year ago.
2. That should read the the maximum chargeable gain would be £2,400. So, if you paid estate agency fees, there would be no gain at all and nothing chargeable. However, you do have to file a return with HMRC in which you claim your annual allowance. Otherwise it is taxed.
Expert:  Buachaill replied 1 year ago.
3. Please RAte the answer as unless you RAte the answer your Expert receives no payment for answering your Question.
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Customer: replied 1 year ago.
Thank you for your quick response. I was very pleased with explanation and pleased of course to hear that I may not need to pay any cgt
Expert:  Buachaill replied 1 year ago.
4. You are welcome. Thank you for accepting the Answer.