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Sam
Sam, Accountant
Category: Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Here is my question. Two brothers have legal ownership of a

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Good afternoon. Here is my question.
Two brothers have legal ownership of a flat in London. The property was funded by and purchased by their parents who have lived in it since 1994 as their only home.
The brothers have always assumed their parents had beneficial ownership and were also told by their father, who is now deceased, that the property was held in Trust. However they have no documentation to support this.
As it is likely that the property will need to be sold at some stage to fund their mother’s care, will they be liable for CGT?

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

HI

If the title deeds are in your names (the brothers) then yes you will have capital gains to pay when the property is sold as you are disposing of a property that was never your main residence - and there is no evidence that a trust was ever set up) however it may be under this situation that the care can be full or part funded by social services - although this may not be the type of care you wished to settle for - but this will NOT be treated as a deprivation of capital by your parents as was placed this way back in 1994 when one would assume both your parents were in good health

Let me know if I Can assist further

Thanks

Sam

Customer: replied 6 months ago.
Thanks for your response

HI

You are welcome and do let me know if you require anything else, or, if you have all you need, then it would be very much appreciated if you could rate me for the level of service I have provided

Thanks

Sam

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