sorry for the confusion.me and my brother own the house we got when my mother died. my brother and i mortgaged house to pay off third party. if my brother dies before me and i sell property how much will i have to pay in tax is i sell the property.
90K WAS VALUE BOUGHT OUT THIRD PARTY 30K
My answer is based on the assumption that the property will never have been your main home by the time you sell it.
When you inherited the house, it was worth £90,000. Therefore, the base cost for your one-third share is £30,000 (£90,000 / 3). You then paid £30,000 to buy out a third party so that added £15,000 to your share of the base cost of £30,000 bringing it up to £45,000.If you inherit your brother's half share, the cost to you will be the value of that half share when he dies. Assuming that you sell it shortly after your brother dies, let's assume for £130,000, it's safe to assume that his half share will be worth £65,000. That brings your cost up to £110,000 (£30,000 + £15,000 + £65,000).You will make a gain of £20,000 (£130,000 - £110,000). Deduct the annual CGT exemption of £11,100 and you are left with a net taxable gain of £8,900 on which you will pay CGT at 18% which is £1,602.I hope this helps but let me know if you have any further questions.
tony tax i am confused by my billing i have e-mail telling me ive paid in to a account. so i would like to tip but i dont know where i stand ref the cost.so until i find out i am not tipping. i have 1 email about a 38 pound charge & a 48 pound charge. sorry
when i sell the house would i be taxed on my income from the house & my annual income conbined eg. 20,000 + 26,000 = 46,000 taking me into higher tax bracket