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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 7200
Experience:  FCCA FCMA CGMA ACIS
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My husband and I bought a second property jointly in June

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My husband and I bought a second property jointly in June 2017 for £340,000. He died in March 2018 and I inherited his share. I sold the flat for £365,000 in December 2018. Surely I don't have to pay CGT on the difference between half of £340,000 and £365,000 ( after allowable costs)? The flat was paid for with my inheritance from my mother.
JA: When was the property or asset sold?
Customer: December 2018
JA: Anything else you want the Accountant to know before I connect you?
Customer: No

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

 

There will indeed be a CGT liability, but there is insufficient data for me to be able to help. What was the value of the flat on his decease, please?

Customer: replied 4 days ago.
I estimated £350,000 for probate, but did not get the property formally valued
Customer: replied 4 days ago.
Are you going to answer my question?

Yes, you are, but the computation is complex and I am working on it.

I make your gain 20K, now deduct your non-cumulative Annual Exempt Amount (AEA) of 11.7K leaves 8.3K exposed to CGT at 18% or 28% or a combination of the two rates depending on your income including the gain in the tax year of disposal. A worst case scenario would be a CGT bill of a tad under 2.5K.

Customer: replied 4 days ago.
Thank you. Can you explain how you arrived at the calculation, as I need to enter it on my self assessment tax return. There will also be some deductions to be made from the value of the property, for example the £17,200.00 stamp duty paid on the purchase.

You just need to enter the gain on your return. In any event the Stamp Duty, or rather its regional equivalent, will eliminate any gain for CGT purposes so there will be nothing to declare anyway. On your return emulate Brer Fox, 'For he lay low and say nuffin!'

bigduckontax and other Tax Specialists are ready to help you
Customer: replied 4 days ago.
Thank you. I will say as little as possible!

Well done, thank you for your support.