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: 4722
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

My father has just passed away. He lived in his own house.

Customer Question

My father has just passed away. He lived in his own house. The house was previously owned by my father, my mother who passed away in 2004 and my sister who previously lived in the house all her life, up to 10 years ago. Her name was added to the deeds in 1985. She has lived in a flat for the past 10 years and looked after my father who has lived in the house in question. The house is worth approx £130000. Will she have to pay capital gains tax if she sells the house now?
Many thanks.
Submitted: 4 months ago.
Category: Tax
Expert:  taxadvisor.uk replied 4 months ago.

Thank you for your question...

gain from sale of residential property is chargeable to CGT.. There are reliefs given against the gain before arriving at chargeable gain.

As your sister owned 1/3 share of the property, she would claim private residence relief against her share of the gain for all the period (since her name was added to the deeds) she lived in the house as her main residence. She would also get relief for final 18 months of ownership as it was her main residence at some point during the period of ownership.

To answer your question, she may have to pay some CGT depending on the amount of gain (her share) and relief available as aforementioned. One would only know what thsi is once the calculations have be performed.

Once the chargeable gain is calculated, she would get gains allowance against it and the balance would be taxed at 18%, 28% or a combination of both depending on her taxable income in the year of sale.

More information of private residence relief can be found here

https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief

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.

Expert:  taxadvisor.uk replied 4 months ago.

Thank you for your question...

gain from sale of residential property is chargeable to CGT.. There are reliefs given against the gain before arriving at chargeable gain.

As your sister owned 1/3 share of the property, she would claim private residence relief against her share of the gain for all the period (since her name was added to the deeds) she lived in the house as her main residence. She would also get relief for final 18 months of ownership as it was her main residence at some point during the period of ownership.

To answer your question, she may have to pay some CGT depending on the amount of gain (her share) and relief available as aforementioned. One would only know what thsi is once the calculations have be performed.

Once the chargeable gain is calculated, she would get gains allowance against it and the balance would be taxed at 18%, 28% or a combination of both depending on her taxable income in the year of sale.

More information of private residence relief can be found here

https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief

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.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    6894
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Last | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    6894
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    1772
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    464
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2596
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    268
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions