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Buachaill, Barrister
Category: Law
Satisfied Customers: 10978
Experience:  Barrister 17 years experience
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I have just sold a property which was inherited from my father,

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i have just sold a property which was inherited from my father, I understand I may be liable for Capital gains tax. The property when inherited (between my brother and myself) was a going concern (supermarket.) Since then the business has ceased and the property was empty for over a year. The valuation in probate (Ten years ago) £180,000. We have just sold this property for £205,000.Can you give some guidance please
1. There will be little or no CGT payable here. firstly, CGT is only payable on the uplife or "gain" on the difference in value between the £180,000 at which you inherited it and the £205,000 at which you sold it (less any sale costs). So the uplift or gain was only £25,000 at the very most. Secondly, both yourself and your brother have an annual allowance of £11,300 each. So you have £22,600 of an annual allowance between the two of you. So the maximum chargeable gain is only £2,600, which if you something like estate agency fees would mean there was no taxable gain at all.
2. That should read the the maximum chargeable gain would be £2,400. So, if you paid estate agency fees, there would be no gain at all and nothing chargeable. However, you do have to file a return with HMRC in which you claim your annual allowance. Otherwise it is taxed.
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Customer: replied 2 years ago.
Thank you for your quick response. I was very pleased with explanation and pleased of course to hear that I may not need to pay any cgt
4. You are welcome. Thank you for accepting the Answer.