Capital Gains/ Inheritence Question

Hybrids

Hi all.
Long time lurker, first time poster.

My Father died 10 years ago, in his will there was provision for his lodger to live there rent free for as long as they wanted (life interest ?).
On termination of the life interest the house was to become my brothers and mine.
The lodger moved out 6 months ago and we are preparing to sell the property.
Will we be liable for the CGT on the value difference from 2000 to 2010 or from when it was available to us ?

Thanks in advance
H

RAS

There was provision for his lodger to live there rent free for as long as they wanted (life interest ?).

You need to be clear whether they had life interest or whether they had the right to live there as long as they wanted.

Has the tenant signed anything to say they no longer want to live in the house?

Hybrids

Thanks for the quick reply.

I believe it was life interest and the tenant signed to say they no longer wanted to live there.

The wording of the will read:
"My trustees shall allow the said [Lodger's name] to reside rent free in the property on such terms as to payment of outgoings and buildings insurance as my trustees in their absolute discretion think fit"

there were sub sections covering non payment of bills, notice period etc

regards
H

timmyt

Hybrids wrote: »

Hi all.
Long time lurker, first time poster.

My Father died 10 years ago, in his will there was provision for his lodger to live there rent free for as long as they wanted (life interest ?).
On termination of the life interest the house was to become my brothers and mine.
The lodger moved out 6 months ago and we are preparing to sell the property.
Will we be liable for the CGT on the value difference from 2000 to 2010 or from when it was available to us ?

Thanks in advance
H

sounds like a life interest and so should be ok but highly complicated area, so take tax advice

silvercar

Depends whether you owned the property or whether it was owned in trust.

Post on the tax baord, jimmo there is an expert on CGT.