Would I pay Capital Gains Tax

glp

Hi, i was left £20,000 in a will with the balance of a small cottage to go to me as well once sold. At that point, the cottage would have had to be sold to pay the legacies out but the solicitor was taking lots of fees and helping himself to the funds of the small estate which was left for petty things but which were adding up to a few thousand, depleting savings of the estate. I paid £25,000 so that all the legacies could be paid and then the cottage was transfered in to my name (obviously not taking the £20,000).
That was twelve months ago, my question is, if i now tried to sell this cottage, would i have to pay capital gains. It is worth about £65,000/£70,000 and would i benefit if changed in to joint names with my husband if i do.
Thank you.

G_M

First, I don't understand

I paid £25,000 so that all the legacies could be paid

- this should have been paid out of the Estate before any Beneficiaries received the residue.

If you have lived in the cottage as your main home since you took possession, then CGT is not payable.

If it has not been your main home, then any increase in value between the date you inherited and the date you sold, is taxable.

More here on CGT.

Fire_Fox

I don't understand either. Do you mean you paid £25K out of the estate or out of your own money? If out of your own money, why did the executors allow you to do that?

glp

Thank you for both your replies.

I paid £25,000 of my own money. The balance of the cottage was coming to me anyway, but the reason i did this was to stop the solicitor taking funds and depleting the whole estate,
With equity in the cottage plus some savings, there was a shortfall of £25,000 to pay other beneficaries, and with the cottage not selling, the solicitor was charging large fees for not much work, this could have gone on a few years so i thought the best way to stop him helping himself was to pay into the fund, pay the beneficaries then the cottage would be mine, which is what has happened. Hope that is a bit clearer