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bigduckontax, Accountant
Category: Tax
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Parents died, their property vested to three siblings, one

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Parents died, their property vested to three siblings, one brother lived in property rent free. He has since died and property sold. Gain to each sibling is £29K. Are the two surviving siblings subject to capital gains tax or any other tax?

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

It depends on whether they own houses elsewhere, please advise.

Customer: replied 1 year ago.
Both own other houses
Customer: replied 1 year ago.
By other houses I mean own homes.

Then they will be liable to UK Capital Gains Tax (CGT). The 29K gain is reduced by the non cumulative Annual Exempt Amount (AEA) of 11.3K to 17.7K. This is taxed at 18% or 28% or a combination of the two rates depending on the individual's income including the gain in the tax year of disposal. A worst case scenario is a tax bill of a tad under 5K.

I do hope that you have found my reply of assistance.

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Customer: replied 1 year ago.
Thank you, ***** ***** to confirm whether sale came under the inheritance tax rule as it was not bought for profit and no gain was made whilst sibling lived there. DW

Doesn't make the slightest difference. They owned a second home and are thus liable. Of course if the deceased's estate is still in executors or administrators' hands then they pay the CGT before distribution.

Thank you for your support.