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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15979
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Do I have to pay capital gains tax on a property that was transferred

Customer Question

Do I have to pay capital gains tax on a property that was transferred to me by my mother in 2012? She lived in it up until her death in March 2016.
Many thanks
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi. You may have to pay CGT. If you sell the property for more than it was worth when it was gifted to you in 2012, then you will have made a capital gain. The first £11,100 of gains you make in the 2016/17 tax year will be tax free. You will pay CGT at 18% or 28% or a combination of the two rates on the balance depending on the level of your income in the tax year you sell the property. Take a look here for information on CGT and here for information on how to work out your tax rate. Part or all of the gain will be exempt from tax if you lived in the property during your ownership of it. Look here for information on CGT and the main home. As your mother continued to live in the property, the gift was a resevation of benefit which you can read about here. Unless your mother's estate including the value of the house at the time of her passing exceeded the Inheritance Tax threshold, there wouldn't be any IHT to pay. I hope this helps but let me know if you have any further questions.
Expert:  TonyTax replied 1 year ago.
Hi.I'm just following up to find out if my answer helped or if you have any further questions.