Capital gains shared inheritance

sunriseandgo

Hi, 

Husband owns half an inherited property. It has increased in value. We have lived in the property for 4 years. 

We want to buy the brothers share. How will capital gains tax work in this situation? 

Thankyou in advance 

Keep_pedalling

sunriseandgo said:

Hi, 

Husband owns half an inherited property. It has increased in value. We have lived in the property for 4 years. 

We want to buy the brothers share. How will capital gains tax work in this situation? 

Thankyou in advance 

If there is any CGT to be payed it will need to be payed by your BIL.

Jeremy535897

Brother-in-law will realise a capital gain equal to the difference between the market value of his 50% share at the date of transfer, and 50% of the probate value of the whole property. If there is a loss, it is unlikely to be of any value, as you, your husband and your brother-in-law are connected persons for capital gains tax purposes. There may be a stamp duty liability for you and your husband on the amount paid to your brother-in-law, depending on how much that is, and how many properties you have an interest in.

Your brother-in-law will pay capital gains tax on any gain above his annual exemption of £12,300 and any losses, at 18% or 28% depending on his income. He will have 30 days from completion to report the gain and pay the tax (assuming any is due).