Property in Isle of Man - CGT?

esmy

Partner inherited his mothers house in IOM on her death along with his brother . Partner, brother and mother had been joint owners of the property. Brother lives there, partner is UK tax payer and never resident in IOM. Brother plans to buy part of partners share, eventually his whole share. Would  CGT be payable?

Keep_pedalling

If your mother’s partner died recently then there is unlikely to be a CGT liability is that only applies to any gain in property value since the date of death.

Has your partners share actually been put in her name or is probate still ongoing?

esmy

Sorry, wasn't clear on relationships - my partner, his brother and his mother jointly owned the property. On his mother's death 2 years ago, ownership passed to my partner and his brother. Partner is being bought out of the property by his brother.

Keep_pedalling

esmy said:

Sorry, wasn't clear on relationships - my partner, his brother and his mother jointly owned the property. On his mother's death 2 years ago, ownership passed to my partner and his brother. Partner is being bought out of the property by his brother.

In which case you partner could have a CG liability but only if his share in the property has gained in value by morE that his annual allowance of £12,300, assuming he has no other gains take into account.

Jeremy535897

There look to be two elements to the gain: the one third your partner has owned for some time, and the one sixth he became entitled to as a result of his mother's death (assuming they owned the property equally). The gain will be calculated based on the market value of his half at the date it is transferred to his brother, less what he paid for his third originally, less the market value of the one sixth he inherited from mother at the date of her death.

EDIT: I should add that the Isle of Man rules should be checked, as the UK-Isle of Man allows both the UK and the Isle of Man to tax a gain by a UK resident on immovable property in the Isle of Man. I would be very surprised if the Isle of Man taxes non residents on gains of Isle of Man immovable property, but the UK taxes non residents on gains on UK immovable property.