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For an individual who is moving from one home which has been their main home to another, if they move before they sell the first property they will be given the last 18 months of ownership as a tax free period. See HS283 here.
For an individual moving into a care home, the period of grace after moving out is 36 months. See here for confirmation. I'm not sure the 36 months will apply to an individual moving in with a relative as opposed to a care home but certainly the last 18 months of ownership will be tax free as well as the period your mother lived in the house. If the property is let, then letting relief will apply to any gain not covered by the last 36 months of ownership and that can reduce a gain by up to £40,000. See example 9 in HS283 to see how main residence relief and letting work together. The March 1982 value of the property should be used as the cost of the property for CGT purposes unless the actual 1970 purchase price is higher which I doubt.
I hope this helps but let me know if you have any further questions.
I have to go out for but will be back in about 25 minutes.
Capital Gains Tax was introduced in 1965. It's start point was moved to 1 April 1982 in the 1980s. Any gains accrued up to and including 31 March 1982 are exempt from CGT. So, where an asset was bought before 1 April 1982, the 31 March 1982 value of that asset can be used as its "cost" for CGT purposes.
The rules as I've described them do apply to your mother.
That's correct. There can only be CGT if she sells it or gives it away before she dies.
When your mother dies, the house will be part of her estate at its then market value for IHT purposes so that only any increase in value from that point would be taxable as a capital gain if it were sold by the estate or passed to the beneficiaries of the estate.
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