Capital gains tax

Rural_Puppy

There are a lot of things about this scenario  that we cannot know.  Easy to make assumptions! Hence asking an open question.

Kate38

Thanks everyone for your responses, they’ll help when I speak to HMRC. The house was meant for both myself and my brother but he was in an unhappy marriage at the time and no one wanted his now ex-wife making a claim on the house. It’s still solely in my name.
We never expected her to stay in the nursing home and I can’t move into her house as it’s too far away from where we live. 

I will look into house prices from 2005 and try to figure out how much I’ll have to pay in CGT. Thanks again 

greatcrested

You'd be advised to get a proper valuation to base your CGT return on.

Pay a RICS surveyor to give you a valuation as at 2005. You then have a professional written valuation toshow HMRC if required.

How is your grandmother's care being funded? If by the local authority, read up up on (and beware of) 'deprivation of assets'.

xylophone

We never expected her to stay in the nursing home and I can’t move into her house as it’s too far away from where we live. 

Hang on a minute, this is your house?

Or do you mean that your grandmother was living in a house other than the one that she gifted into trust?

Has she only just moved into a nursing home? If so, how are the fees being met?

If she is neither self funded nor CHC funded, has the LA raised any questions about the gift into trust?

xylophone

Another thought, once you do sell the property, if you make a gift to your brother, this will need to be recorded with your own Will as a PET from your estate because as things stand, regardless of the informal understanding you had with him, all the sale proceeds are yours.

AdrianC

Kate38 said:

Thanks everyone for your responses, they’ll help when I speak to HMRC. The house was meant for both myself and my brother but he was in an unhappy marriage at the time and no one wanted his now ex-wife making a claim on the house. It’s still solely in my name.

LEGALLY, the position is simple. It was given to you. It is YOUR house.

If there was any expectation of your brother receiving a penny, "his half" would have been part of the assets he declared during his divorce.

So... Did he lie in his divorce settlement...?

(Oh, what a tangled web we weave...)

We never expected her to stay in the nursing home

But now she has, she needs to declare this substantial gift to the local authority on the funding forms.

and I can’t move into her house as it’s too far away from where we live.

But it couldn't possibly be nearer to where you would live after you move into it...

Comms69

Whichever way the OP looks at it, there's going to be funds in place to pay the CGT element. So i see no real issue for concern on that front. 

In terms of the brother, well I assume familial pressure will apply to 'his' half.