How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask taxadvisor.uk Your Own Question
taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4996
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

Morning,having lived in the family home and since my parents

Resolved Question:

Morning,having lived in the family home and since my parents have died the house was left to their children. One has a 75% share the other 25% being the balance. What cg will we likely pay.
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Thank you for your question.If this is not your main residence then the whole gain would be chargeable to CGT. If you have lived in the property as your main residence for a period since the property was left to you and your sibling then there would be some relief avialable for private residence.Please advise me what the value of the property was at the time of your parents' death and what the value is now. many thanks
Customer: replied 2 years ago.

Approx £250k in 2011, value now approx £325k.

Expert:  taxadvisor.uk replied 2 years ago.
Nick, thank you for your prompt reply.You have not stated if the property was your main residence at any point between 2011 and now. My calculations are based on the assumption it has remained a second home since your parents' demise.Gain (increase in value) £75,000As there are two owners now, both would be entitled to gains annual allowance of £11,100 eachShare 1 (75,000 x 75%) 56,250Chargeable gain (56,250-11,100) £45,150CGT rate of 18%, 28% or a combination of both depending on total taxable income including the gain in the year of saleMaximum CGT 45,150 x 28% £12,650Share 2 (75,000 x 25%) 18,750Chargeable gain (18,750-11,100) £7,650CGT rate of 18%, 28% or a combination of both depending on total taxable income including the gain in the year of saleMaximum CGT 7,650 x 28% £2,142Total maximum CGT payable (12,650+2,142) £14,792 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.
taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 2 years ago.
I thank you for accepting my answer.

Best wishes.