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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I was given a house in 2011 I sold it in 2014. It was the only

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I was given a house in 2011 I sold it in 2014. It was the only property I owned. After paying all the debts on the house care fees Tec. I was left with £50000 do I need to fill in a capital gains tax form as it was my only home?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi.

Who gace you tyhe house? Did you live in the property for the entire period of your ownership of it?
Customer: replied 1 year ago.

My aunt put the house in my name and continued to live in it until she went into a care home I then put it up for sale. I never lived full time in it.

Expert:  TonyTax replied 1 year ago.
Thanks.

Leave this with me while I draft my answer. It will take a while so bear with me please.
Expert:  TonyTax replied 1 year ago.
Hi again.

For information on the main residence and CGT, take a look at HS283 here. The fact that you didn't own another property doesn't necessarily make the one you do own your main residence. It could be let for instance.

You say you never lived full time in the property. What does that mean exactly? You are given exemption from CGT for the proportion of any gain you make that is covered by the period that you lived in a property that you considered to be your main home and for the last 18 months of ownership, even if you were not living there during that period.

If the property was not your main home for the entire period of ownership and for a maximum of the last 18 months of ownership, then part of the gain will be taxable and you will need to report it to HMRC in your tax return. Ther first £11,000 of any gains made by an individual in 2014/15 will be tax free.

As your aunt continued to live in the house after gifting it to you, it is a gift with reservation of benefit which means that it remains in her estate for Inheritance Tax purposes until she either passes away or moves out and lives for a further seven years. Given the Inheritance Tax threshold of £325,000 for an individual and up to £650,000 for the surviving spouse of a married couple, this may not be a problem. It was also a disposal for CGT purposes, though if the property was her main home for all the time she owned it, there will be no CGT to pay.

I hope this helps but let me know if you have any further questions.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15885
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
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