Capital Gains Tax Advice

woodmill

Morning. Wonder if anyone can help me? Can't work this out myself!

In March 2004 my brother died. In his Will he left me a property that he rented out. The property was valued at £58,000 in March 2004. It was finally transferred into my name in November 2005 and I subsequently sold it in October 2007.

No valuation was carried out when it was transferred to me in November 2005.

Can anyone help me with what I need to do? There do not appear to be any clear instructions on the Revenue website.

I should also point out that I lived in the property too. I rented it from my brother until 2003. A further tennat moved in when I left and stayed there until I sold last year.

Thanks for any help you can give.

Cook_County

The gain is between the date of your brother's death & the date of sale - taxable & reportable on the capital gains pages of your tax return.

MrBeans

woodmill wrote: »

Morning. Wonder if anyone can help me? Can't work this out myself!

In March 2004 my brother died. In his Will he left me a property that he rented out. The property was valued at £58,000 in March 2004. It was finally transferred into my name in November 2005 and I subsequently sold it in October 2007.

No valuation was carried out when it was transferred to me in November 2005.

Can anyone help me with what I need to do? There do not appear to be any clear instructions on the Revenue website.

I should also point out that I lived in the property too. I rented it from my brother until 2003. A further tennat moved in when I left and stayed there until I sold last year.

Thanks for any help you can give.

Between when and when did you live in it as owner? If it was your main residence no capital gain tax is due on the gain during that period.

woodmill

Small typo above. I lived in it until March 2005 but am I classed as the owner from brother's death or from when the property was actually transferred to me?

Cook_County

I have already answered that question. However it may have been your main residence. Did you have other residences available after March 2004?

MrBeans

So it looks like you owned it for 43 months and lived in it for 12 months. Assuming it was your main residence I think that means that 12/43 of the gain is not taxable and 31/43 of the gain is subject to CGT.

Cook_County

If this was your PPR - which we do not know yet - the entire gain would be exempt from CGT.

silvercar

MrBeans wrote: »

So it looks like you owned it for 43 months and lived in it for 12 months. Assuming it was your main residence I think that means that 12/43 of the gain is not taxable and 31/43 of the gain is subject to CGT.

AS Cook_County says, this is not correct. You are exempt from CGT for the time it was your PPR and the last 36 months of ownership.

PPR=Principal Private Residence ie your main home where you live, or if you own more than one home, the one you have declared to be your PPR or the one that factually has been your PPR.

healthier

You are bound to pay CGT on the property as you owned it at the time of sale.

Cook_County

healthier wrote: »

You are bound to pay CGT on the property as you owned it at the time of sale.

Why?? It may have PPR exemption. This is why jimmo asked all those questions!!

silvercar

healthier wrote: »

You are bound to pay CGT on the property as you owned it at the time of sale.

I hope the spam in your signature makes more sense than the info you posted!