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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5027
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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In 1970 I inherited from my father a 25% beneficial interest

Customer Question

In 1970 I inherited from my father a 25% beneficial interest in a house. I do not know the value of my share as at 1970. Cousins own the other 75%. The house is used only as a shared holiday home and is not and never has been my main residence. One cousin is now willing to buy me out for about £85,000. Will I be liable for Capital Gains Tax or any other 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.

Yes, you will be liable to Capital Gains tax on the gain made on selling your share of the property.

As you inherited the 25% beneficial interest in the house in 1970, you would use the valuation in Mar 1982 as your cost price.Your gain would be the difference between the valuation at Mar 1982 and the value now.

More information on this can be found here

http://www.rics.org/uk/knowledge/glossary/1982-market-values-for-residential-and-commercial-property/

You would claim annual exempt amount against this gain and the balance would be chargable to CGT at 18%, 28 % or a combination of both depending on your taxable income including the gain in the year of sale.

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.