Cgt and private residence relief

Paulrm71

Apologies if this is a stupid question, but can you claim prr on a second home if you owned it for less than 18 months?

My sister and I sold our late father's home in June 14 (he passed away Sept 13). My sister lives there with him and didn't own her own home so I assume that she will not pay any cgt, but I own another home which is my main residence.

Thanks

Paul

CLAPTON

Paulrm71 wrote: »

Apologies if this is a stupid question, but can you claim prr on a second home if you owned it for less than 18 months?

My sister and I sold our late father's home in June 14 (he passed away Sept 13). My sister lives there with him and didn't own her own home so I assume that she will not pay any cgt, but I own another home which is my main residence.

Thanks

Paul

PRR is allowable on a house you actually lived in as your primary residence

as you sister actually lived there during her ownership, she would pay no cgt on the increase in selling price over probate value

however you will pay cgt on your half (less allowable costs) although you have a cgt allowance of 11,100

cte1111

Your gain will only be (half of) the increase between the probate date and the sale date, less sale costs, e.g. estate agency and solicitor fees. As Clapton says, you also have your annual CGT allowance of £11,100.