Capital Gains Tax Question

robd103

Hi,

My father and I jointly own a house 50/50.

As a tenant in common for 8 years but not living in the property (my dad lives there), what would be the capital gains tax situation?

Background: bought 1985 for 50K, probable value circa £250k now.

Thanks.

dimbo61

Who bought the house 29 years ago ?
£200K increase in value over 29 years
Did you live in the property ?
Speak to an accountant

theartfullodger

When did you become a joint owner??

What written valuations have you got regarding it's value when you became joint owner??

The CGT position depends on when you sell (either totally or just your share). Neither you, me or Dave's government know what the CGT rules will be in future..

Cheers!

robd103

Hi there,

the house was purchase by my mother and father 29 years ago. My mum died in 2005 and left me her 50% in her will. I lived in the house until 2008 but moved out after that, but I have been a joint owner for 8 years.

My dad is looking at selling the property outright - we both want to sell. He is 74 so cant get another mortgage to just buy my share so we want to put it on the market.

There was a valuation of my 50% as being worth 125k in 2005 for the will I believe - will have to check this.

THanks for your help.

roger196

Your Dad has no CGT liability as ppr throughout.
You acquired property for 125k and your half share is now 125K ( 50% of 250k but would normally get some discount as being jointly owned). Thus there is no gain.
You would get ppr for the three years you were living there plus the last 36 months divided by your total period of ownership ( eight years and say six months). Thus only 30 / 102 would be chargeable.
Much depends on the valuation of the whole today.