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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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My daughter loaned her brother £60,000 to buy and renovate

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My daughter loaned her brother £60,000 to buy and renovate a property, he was later made redundant and was unable to repay her, they agreed that the property would be transferred to her as payment of the debt. The property is now worth £120,000, if she decides to sell it in the future would her Capital Gains liability be on the £60,000 profit she would make (less solicitors and estate agents fees and CG allowance) or on the £120,000.
Hello my name is ***** ***** I will help you with this.
Is this her only property please?
Customer: replied 2 years ago.

No she has her own home

In effect she paid £60,000 for the property, which is now worth £120,000 but has had no repayments back?
Customer: replied 2 years ago.

No her brother was made redundant so the property was transferred to her in lieu of the debt

Ok. Then she would be liable for CGT on the £60,000 profit made, less expenses.
She has in effect paid £60,000 for the property, which brother used to buy it. So it is the £60,000 profit.
Can I clarify anything for you about this today please?
Ash and other Law Specialists are ready to help you
Customer: replied 2 years ago.

Thank you very much. I had been told that as no money had changed hands because it was transferred to her, she would be liable for CGT on whatever she sells it for.

Yes but in effect it was a £60,000 purchase.

I am just following up to see if there is anything else I can help with?

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