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TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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, My question is what my tax liability

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Hello my name is Brian,
My question is what my tax liability will be on a house I currently own 50% with my mother. It is not her home. But she wants to gift her 50% to me now. The house is valued currently at £120k. If she gifted it to me today and I sell it in 6mts at 120k will I have to pay capital gain tax from when I owned 50% ten years ago when it was worth £90k or is the. Capital gains be based on when I own 100% of the property
Hello and thank you for allowing me to assist you.
Your capital gains would rely on both portions. The first when you were gifted 50% and when you own 100%.
When you receive the property as a gift and there has been no claim for Gift Hold-Over Relief (this is not business property so there would be none), you use its market value at the time you received it. You are only receiving half as a gift so only half is related to the market value.
Your cost would be the amount you paid for your half originally and then the value of your mother's half.
You gain would be the difference in the cost and the sale. If you paid half the £90k you would have £45k plus half the £120k (£60k) which is £105k.
Your gain would be £15k.
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