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Each of you will need to report your share of the house split 3 ways.
Work out the gain for you’ve disposed of in the tax year. Your cost is the value when you inherited
Add together the gains from all assets sold in the year.
Deduct allowed losses.
The tax year runs from 6 April to 5 April the following year.
Non residents (like your one brother) are still taxed on UK located property).
You need to pay Capital Gains Tax when you sell an asset if your total taxable gains are above your annual Capital Gains Tax allowance.
The Capital Gains tax-free allowance is:
Transfers between husbands and wives and civil partners are generally exempt from inheritance tax (IHT) and capital gains tax (CGT). He would retain your cost in the property for reporting. This provision is a benefit to wealthier married couples because it allows them to make optimum use of both their CGT annual exemptions.
He would not pay if he sells his portion for less than his allowance. The same rules apply to him as would apply to you. The gain i the difference in the market value when inherited and the sale price. Then his allowance is applied. If he can reduce all by his allowance he would not pay.
If you give him you share then the property is split (for sale) between him and your 2 brothers. You do not report anything.
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