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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5015
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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My brother and I are joint owners with our mother of her mothers

Customer Question

My brother and I are joint owners with our mother of her mothers house. With her we own one third each. Only she lives in the property. If she sells the property to move, would my brother and I pay capital gains tax?
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

Gain from sale of property gives rise to capital gains tax. As your mother is living in the property, she would be able to claim private residence relief against the gain for the period she has been living in that property as her main residence.

It appears from your statement that you and your brother are not living in the property and therefore your share of the gain would be chargeable to CGT in whole. You would claim gains allowance against it and the balance would attract CGT at 18%, 28% or a combination of both depending on your total income in the year of sale.

More information on private residence relief can be found here
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/323679/hs283.pdf

I hope this is helpful and answers your question.


If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Expert:  taxadvisor.uk replied 2 years ago.

Hello Robert

I notice you have viewed my response to your question about capital gains tax (JACUSTOMER-wqlttuhu- Last Viewed on 19/04/2015 at 18:55).


Just checking to see if you have any issues relating to your question that I may not have addressed.


Please let me know if I can be of further assistance.