capital gains query

3980

hi , brother and i have been granted probate on parents old house , brother is not to well and would like an easy sale, i would like to buy his half ,tidy the house up and sell later , if i bought it as i understand it i would have a capital gains allowance of 10600, if i where to transfer half to the the wife we would then have two lots of allowance 21200 , is this correct or is there a better way, any help would be appreciated, thanks .

simpywimpy

I think you would have capital gains on the transfer to your wife if Im not mistaken

CLAPTON

3980 wrote: »

hi , brother and i have been granted probate on parents old house , brother is not to well and would like an easy sale, i would like to buy his half ,tidy the house up and sell later , if i bought it as i understand it i would have a capital gains allowance of 10600, if i where to transfer half to the the wife we would then have two lots of allowance 21200 , is this correct or is there a better way, any help would be appreciated, thanks .

1. when you buy from your brother any cgt will be based on the GAIN in price from the probate value (half of ) with an allowance of 10,900 (payable by your brother of course) but the tax will probably be zero


2. you can indeed transfer half the value to your wife as no tax between married people.

CLAPTON

simpywimpy wrote: »

I think you would have capital gains on the transfer to your wife if Im not mistaken

you are mistaken

CKhalvashi

CLAPTON wrote: »

1. when you buy from your brother any cgt will be based on the GAIN in price from the probate value (half of ) with an allowance of 10,900 (payable by your brother of course) but the tax will probably be zero


2. you can indeed transfer half the value to your wife as no tax between married people.

Correct, although it may be easier to tidy first, then sell, with half going to each and possibly a little CGT to pay, to avoid getting into the unknown with HMRC.

The main issue would be what the house was actually worth on the first sale, and probably one they'd try to stretch to their advantage, doing what you're planning.

CK