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 JGM Your Own Question
JGM, Solicitor
Category: Law
Satisfied Customers: 12179
Experience:  30 years as a practising solicitor.
Type Your Law Question Here...
JGM is online now

my mother transferred her property to my brother and I in July

This answer was rated:

my mother transferred her property to my brother and I in July 2012 and unfortunately in October 2012 was admitted into a nursing home. The council said that we had to pay for her care so we had to sell the house which we did in January 2014 and received £63,697 each. Since September 2014 we are paying £6000 each per annum towards her care costs. Where do I stand with regard to Capital Gains tax please
Jan Joseph
Thank you for your question.
You will Have a potential liability for capital gains tax based on any increase in value between July 2012 and January 2014. So you have to know whether the property has in fact increased in value during that period.
However, there may have been no increase in value and in any event you each have your annual allowance of £11000, ie a total of £22000 increase before you start to pay CGT assuming you haven't any other CGT liabilities in the tax year in which the property was sold.
Happy to discuss further.
Please leave a positive response so that I am credited for my time.
Customer: replied 3 years ago.

Thankyou.....just to confirm the capital Gains Tax would only be on the difference between what the house was worth when Mum gave it to us and what it was sold for?

Yes it would.
JGM and other Law Specialists are ready to help you