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Another CGT question

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.

Comments

  • 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.
    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
    ccfc1972 Posts: 166 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    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.
  • Slithery
    Slithery Posts: 6,046 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    ccfc1972 said:
    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.
    Was it always his primary residence?
  • Slithery said:
    ccfc1972 said:
    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.
    Was it always his primary residence?
    Yes, does that matter? He's 98.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    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.
  • So if he gave the house away to me, he should have paid CGT?
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 11 December 2020 at 11:06AM
    ccfc1972 said:
    So if he gave the house away to me, he should have paid CGT?
    As above:

    "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.
  • Great, thanks.
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