House Gifted 15 Years Ago Capital Gains?

Nobber_2

Hello


My mother gifted her house to myself and my brother 15 years ago and we want to sell it now, my brother has been living there but I have had another house and only lived there for a year


1. How can I make use of any allowances if any
2. what's the best way to get a valuation for the house back in 1998
3. what's the best way to minimise my tax bill


Any advice appreciated
thank you

xylophone

http://www.hmrc.gov.uk/cgt/property/basics.htm
Have you read through the above?

Nobber_2

Hello thanks for the reply, yes I have but I can't see anything about how the valuation of the property can be calculated (back in 1998) and what might be acceptable to the tax office

pjcox2005

I've assumed it's owned 50:50 and this is very high level advice.

Your brother is likely to qualify for Principal private residence so no tax liability.

If it was your only place when you lived there then you may also get PPR relief for that year and the final 36 months of ownership. Impact would be that 4/15 of the gain are not taxable. Search PPR and run through the relief to check you qualify.

Personal annual allowance of c.£11k could also be used. Potential to use your wifes allowance as well should you have one.

Practical perspective perhaps your brother will consider spliting the liability as he had the benefit of living there.

For the capital gain calculation you will use market value at the time of gift as your base cost. Land registery for sale prices (assuming they go back that far) on the street may help get a ballpark but for comfort I'd suggest you get a valuation done as valuers should be able to provide an estimate at that time.

antrobus

Nobber wrote: »

Hello thanks for the reply, yes I have but I can't see anything about how the valuation of the property can be calculated (back in 1998) and what might be acceptable to the tax office

The Land Registry House Price Index goes back to 1995. You can use that to back calculate a 1998 value based on a current valuation/sale price.

http://www.landregistry.gov.uk/public/house-prices-and-sales

Nobber_2

Thank you both for the replies and good advice

System

Was it gifted outright, or in trust giving either beneficiary the right to live there?

nomunnofun

pjcox2005 wrote: »

I've assumed it's owned 50:50 and this is very high level advice.

Your brother is likely to qualify for Principal private residence so no tax liability.


Personal annual allowance of c.£11k could also be used. Potential to use your wifes allowance as well should you have one.

.

I think that this could cause big problems.

If the end result is 1/3, 1/3, 1/3 ownership , the PPR relief would be reduced for the brother.

The other option would be a ratio of 50% (brother), 25% (op), 25% (op wife).

In either HMRC may well attack the transfer to the op's wife as an exercise simply to avoid CGT, an issue addressed many times on these forums.

Nobber_2

Hello It was gifted outright 50:50 to myself and brother

margaretclare

So where does your mum live now?

nomunnofun

Nobber wrote: »

Hello It was gifted outright 50:50 to myself and brother

Yes but the suggestion has been made that you use your spouse's annual exemption which can only be done by adding the name to the property.