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bigduckontax, Accountant
Category: Tax
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My brother and I bought a house in Feb 1987 as a main residence both and our then 6

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My brother and I bought a house in Feb 1987 as a main residence for us both and our then 61 year old mother, the purchase price was £49,000 and market value now is c. £200,000. My brother and I have always contributed in equal shares to the running and maintenance of the home (including the mortgage when we had one…. The house is now mortgage free).
For reasons that were convenient at the time, the house was registered in my sole name only and I am now want to recognise my brother’s 50% share properly by adding his name as tenant in common.
Over the past decade, we have both got married and now have homes elsewhere with our respective spouses. We continue to maintain the original home in equal shares for our elderly (89 year old) mother and she lives there free of any rent and all other running costs normally associated with home ownership.
If our married homes are now considered as our main residences, will there be any Capital Gains tax considerations for :
1.If I add my brother
Hello, I'm Keith and happy to help you with your question.
Here is the advice from The Guardian:
'A Relief from capital gains tax on the sale of a house inhabited by a dependent relative only applies to a residence acquired before April 5 1988. That was one of the tax concessions phased out by Gor***** ***** as part of his drive to boost the coffers of the Inland Revenue.'
You are just in under the wire as you bought in 1987. There would be no Capital Gains Tax due on the disposal of 50% of your ownership of this house occupied by your mother, a dependent relative, to your brother.
I do hope I have been able to set your mind at rest on this matter.
bigduckontax and other Tax Specialists are ready to help you
Thank you for your support.