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Another CGT question
ccfc1972
Posts: 166 Forumite
A friend of the family - who we call Uncle, gifted me his property a couple of years ago. His intention was to help us all out with a few quid as we had helped him out over the years. He is elderly and has had the property since the 80s, but I have no idea how much he paid for it...probably somewhere in the region of £30k. The property is valued at £160k. Am I correct in thinking that I would be required to pay CGT on the amount that the property has increased over such a long period? So £130k, or do I only pay CGT on the amount of value it has increased since I became the owner? Which would be a negligible amount.
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Comments
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Uncle should have paid CGT when he gifted you the property unless it was his primary residence. Your CGT will be based on the property value at the time it was gifted to you and at the time you dispose of it.ccfc1972 said:A friend of the family - who we call Uncle, gifted me his property a couple of years ago. His intention was to help us all out with a few quid as we had helped him out over the years. He is elderly and has had the property since the 80s, but I have no idea how much he paid for it...probably somewhere in the region of £30k. The property is valued at £160k. Am I correct in thinking that I would be required to pay CGT on the amount that the property has increased over such a long period? So £130k, or do I only pay CGT on the amount of value it has increased since I became the owner? Which would be a negligible amount.1 -
It was his primary residence, he then moved in with family.
Oh great, that is a relief, as the value would have been pretty much the same. So no CGT to pay. Many thanks.0 -
You would never pay CGT on the gain in HIS ownership anyway. That's his tax bill, his tax problem if he doesn't pay it.0
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So if he gave the house away to me, he should have paid CGT?0
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As above:ccfc1972 said:So if he gave the house away to me, he should have paid CGT?
"Uncle should have paid CGT when he gifted you the property unless it was his primary residence."
Which you then told us it was, so no CGT due by him.0 -
Great, thanks.0
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