Capital Gains Tax Query

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MoneySaving Newbie

Ian Fullerton

7 Jul 2020, 21:17 BST

Hi
A general capital gains tax question.
My wife and her sister have inherited their mum's house after their mum passed away. As this is the 2nd house for each sister then they are liable to cgt on house price now and the value it was when they were added to the deeds.
My sister in law wants to add myself and her husband to the deeds so she can avail of the extra tax allowance that both husbands can provide.
The house has sale agreed so should be processed in the next couple of months. Because my name is being added at the current house price, am I expected to pay no cgt as the cost difference will be zero or am I expected to pay tax on the share minus the £12000 allowance. I won't be buying/selling anything else in this tax year.
Also is what my sister in law suggesting legal?
I have full time employment so will expect to be a taxed a little at the higher rate
Many thanks

Ian

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