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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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My sister and I are executor's of my mother's will,

Resolved Question:

Hello,
My sister and I are executor's of my mother's will, who passed away recently. My sister and mum actually lived together, so my sister would rather keep the house rather than sell it, so we have nominally agreed to a 50/50split whereby she gives me £100k, in return for me signing over full ownership to her. My question after all that is, will the 100k I receive be taxed under Gains Tax?...
This is all in Scotland, btw...
Many thanks :)!
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.

Hello and welcome to the site. Thank you for your question.

What is the property value at the time of death for IHT purposes?

If the market value of the property is £200k at the time of death and your sister gives you £100k to buy you out, then there is no gain on transfer of property from you to your sister.

As there is no gain, there will be no CGT payable.

You will not be taxed on the proceeds from sale of your share but only on the gain made, if any.

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.

Customer: replied 2 years ago.
Very many thanks for that, that sounds great - we have carried out professional valuations on the house and arrived at an average, which is actually closer to £218k, so I would actually receive £109k - but if I understand you correctly, as I have not received anything above my market share value of the house, no GT is payable...which I must admit makes sense :)?
Expert:  taxadvisor.uk replied 2 years ago.
Ken, thank you for your reply.

You have understood me correctly .. no gain no CGT.

If you are happy and there are no more issues I will appreciate if you would kindly rate/accept the service I provided to ensure I get credited for it.

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Expert:  taxadvisor.uk replied 2 years ago.

I thank you for accepting my answer.

Your reward of a generous bonus is greatly appreciated.

Best wishes.

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