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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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3 siblings inherit property from mother which they then let. Four

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3 siblings inherit property from mother which they then let.
Four months later 2 siblings buy out brother and continue to let property.
Nine years later property sold by remaining 2 siblings.
How is the base cost calculated for CGT computation?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Each sibling has a base cost equal to one-third of the value of the property at the time of their mother's death. The sale by one of the siblings of their share to the other two will be treated as having been done at the open market value of that share which probably won't be much different from the probate value 4 months earlier. Therefore, the base cost of each of the two remaining siblings' individual shares will be increased by 50%. I hope this helps but let me know if you have any further questions.
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