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TaxRobin, Tax Consultant
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My childrens father in law passed away in 2001 leaving his

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My childrens father in law passed away in 2001 leaving his property now valued at £200,000 to them when they reached the age of 25. They are now 31 and 32 and whilst having lived in the property for several years now wish to sell and split the proceeds. Would they be liable for capital gains tax on the sale?
Philip Swain

Hello and thank you for allowing me to assist you.

You don’t pay Capital Gains Tax when you sell (or ‘dispose of’) your home if all of the following apply:

  • you have one home and you’ve lived in it as your main home for all the time you’ve owned it
  • you haven’t let part of it out - this doesn’t include having a single lodger
  • you haven’t used part of it for business only
  • the grounds, including all buildings, are less than 5,000 square metres (just over an acre) in total
  • you didn’t buy it just to make a gain

You don’t need to do anything. You’ll automatically get a tax relief called Private Residence Relief.

If this was their main home after they inherited then there is no CGT.

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