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I have a property that was gifted to me and my brother in equal half from my mother, in 2005. This is my main residence along with my brother. Are there any tax implications (capital gains tax, inheritence) if i wish to sell my half of the property to my brother (ie. he gets a mortgage to buy my half of the house).
1. NO, there are no tax implications if you wish to sell your half of the property to your brother. Firstly, in relation to INheritance tax, as seven years has elapsed since your mother gifted half the house to you, the "Potentially Exempt Transfer" has taken effect without any liability to Inheritance Tax. So you are exempt from Inheritance tax. Secondly, in relation to Capital Gains Tax, there is an exception for a person's principal Private Residence. So as this is the house you are living in and it is your principal residence, then your sale of your half to your brother is free to CGT.
Does anything need to happen requiring a solicitor or can my brother just go straight to a mortgage lender for organising buy out of my half of the property?
And do i need to declare anything to inland revenue even if i am exempt from the taxes?