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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13944
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Me and my sister and brother have passed back our rights

Resolved Question:

Hi. Me and my sister and brother have passed back our rights to our parents house as my mum wanted some equity. The house has increased by 20;000 pounds since my father passed away. I know we have to pay capita l gains tax but not sure how to do this. Regards justine
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.
Hi Justine
Thanks for your question - I am Sam and I am one of the UK tax experts here on Just Answer.
Can you advise whether the total gain is £20,000 and does this covering the period from when the property share was placed into you and your siblings name and the current value. So did your fathers share pass to you three children?
I can then advise further
Thanks
Sam
Customer: replied 1 year ago.
Yes we were on my father's will . Mu dad died four years ago. My mum wanted some equity so we had to sign everything back to her. So we released all of our rights to the property. Yes The house has increased in value of 20000 pounds .so I believe we are liable for capital gains tax
Customer: replied 1 year ago.
On my fathers will . Me my sister and brother shared half the house with my father. Because of this we had to release our share over to my mum cos she wanted some equity. My father died four years ago and the house has increased in value by 20000
Expert:  Sam replied 1 year ago.
Hi
Thanks for your response
As there are three of this this equates to a gain of £6666.66 each and as the annual exemption allowance for this tax year is £11,100 then you are all covered by this exemption with NIL capital gains to pay and nothing to declare to HMRC as below the annual exemption limit for the year.
(And if £20,000 was the total gain - then half of this would be attributable to you three siblings - which again keeps you very much below the annual exemption allowance (so £333.33 gain each)
Let me know if I can assist further
Thanks
Sam
Sam and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Many thanks for explaining.
Expert:  Sam replied 1 year ago.
You are very welcome
Thanks
sam