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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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Please advise on the capital gains tax implication for me and

Resolved Question:

Please advise on the capital gains tax implication for me and my siblings on the following.
I have a brother and sister and we have all moved out of the family home over 20 years. The deeds of the family home is in our parents name.
Our father died in 2007 and bequeathed half the home equally between me and my siblings and the other half to our mother. Our mother continued living in the house.
We now wish our mother to buy a flat and to move out of the family home. Due to the flat being part of a housing association and a new development, they have stipulated that she must relinquish her interest in her current property. There is not time to sell the property before the purchase. We therefore, intend to transfer her interest to us by gift and change the title deeds. Thereafter we intend to sell within the year. Could you please advise whether we would be liable for CGT on our mother's share of the property and if so, if the capital gain is calculated from the date she gifted her share or another date.
Submitted: 3 years ago.
Category: Tax
Expert:  TaxRobin replied 3 years ago.
Hello,
As the property is a gift to you, made after 31 March 1982 - you use its market value when it was given to you for the cost.
You will be liable for CGT on the portion you receive from your mother but the date is when you receive it which should be very close to the amount you receive so no gain may be realized and no tax possibly.
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