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bigduckontax, Accountant
Category: Tax
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I am the half owner of a house which was left to my brother

Customer Question

I am the half owner of a house which was left to my brother and I by my father in 1989. My mother and then my brother lived in the house until my mother died. My brother still lives there. My brother's son wants to buy my out but where do I stand as far as Capital Gains?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I'm Keith and happy to help you with your question. The news I bring will not be to your liking.
As you never occupied the house as your sole or main domestic residence then you will be liable to Capital Gains Tax on the gain made on disposal. This gain is calculated by taking the net selling price and deducting the probate value plus any improvements made eg installation of double glazing, central heating, extensions etc. 50% of this gain is down to you and will be taxed at 18% or 28% or a combination of the two rates depending on your income including the gain in the year of sale.
I am so sorry to have to rain on your parade.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3122
Experience: FCCA FCMA CGMA ACIS
bigduckontax and 3 other Tax Specialists are ready to help you
Customer: replied 1 year ago.

Keith

Thank you. I had hoped I was wrong but that is what I read when looking on the net.

So homework time to find cost of improvements.

Gavin Stanley

Expert:  bigduckontax replied 1 year ago.
Yes, regrettably; don't you just wish you had kept all that paper work!
Please be so kind as to rate me before you leave the Just Answer site.
Expert:  bigduckontax replied 1 year ago.

Thank you for your support.

I should have mentioned that under the CGT regime you do have an Annual Exempt Amount of 11K current year; [11.1K 15/16 year] which can be used to offset any gain made.

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