Selling property that was gifted

WibbleMyFins

Sorry if this is in the wrong forum.

So  a year ago I was gifted 25% of a house. The other owners now want to sell and I have no problem with this. I also own amd live in my own house. I'm trying to work out if I will have to pay capital gains tax on the full 25% of the selling price, on the amount it's value has gone up by. Eg if the value of the property has gone up by 20k in the last year. I pay capital gains on 5k ( obviously not the actual figures). Also if I bought a new house with the other owners using all of my share of the sale do I pay capital gains still?

Thrugelmir

Did the other owners declare their own CGT liability when gifting you a 25% share? 

p00hsticks

WibbleMyFins said:

Sorry if this is in the wrong forum.

So  a year ago I was gifted 25% of a house. The other owners now want to sell and I have no problem with this. I also own amd live in my own house. I'm trying to work out if I will have to pay capital gains tax on the full 25% of the selling price, on the amount it's value has gone up by. Eg if the value of the property has gone up by 20k in the last year. I pay capital gains on 5k ( obviously not the actual figures). Also if I bought a new house with the other owners using all of my share of the sale do I pay capital gains still?

You have a CGT allowance of £12.300 so in your example no CGT would be due, assuming that you have not used up that allowance on other capital gains in the year.  What you do with the money is irrelevant.

WibbleMyFins

I suspect not

WibbleMyFins

p00hsticks said:

WibbleMyFins said:

Sorry if this is in the wrong forum.

So  a year ago I was gifted 25% of a house. The other owners now want to sell and I have no problem with this. I also own amd live in my own house. I'm trying to work out if I will have to pay capital gains tax on the full 25% of the selling price, on the amount it's value has gone up by. Eg if the value of the property has gone up by 20k in the last year. I pay capital gains on 5k ( obviously not the actual figures). Also if I bought a new house with the other owners using all of my share of the sale do I pay capital gains still?

You have a CGT allowance of £12.300 so in your example no CGT would be due, assuming that you have not used up that allowance on other capital gains in the year.  What you do with the money is irrelevant.

If the property sold for it's asking price the 25% would be a lot more than the cgt allowance 

Thrugelmir

WibbleMyFins said:

I suspect not

In answer to? 

WibbleMyFins

Thrugelmir said:

WibbleMyFins said:

I suspect not

In answer to? 

The cgt liability 

WibbleMyFins

Thrugelmir said:

Did the other owners declare their own CGT liability when gifting you a 25% share? 

I suspect not

p00hsticks

WibbleMyFins said:

p00hsticks said:

WibbleMyFins said:

Sorry if this is in the wrong forum.

So  a year ago I was gifted 25% of a house. The other owners now want to sell and I have no problem with this. I also own amd live in my own house. I'm trying to work out if I will have to pay capital gains tax on the full 25% of the selling price, on the amount it's value has gone up by. Eg if the value of the property has gone up by 20k in the last year. I pay capital gains on 5k ( obviously not the actual figures). Also if I bought a new house with the other owners using all of my share of the sale do I pay capital gains still?

You have a CGT allowance of £12.300 so in your example no CGT would be due, assuming that you have not used up that allowance on other capital gains in the year.  What you do with the money is irrelevant.

If the property sold for it's asking price the 25% would be a lot more than the cgt allowance 

As the name suggests, CGT is payable on the gain in value, not the value itself. The complication here is what the value of the gift should be taken as. The relationship to you of the person / people making the gift may also be significant.

Thrugelmir

WibbleMyFins said:

Thrugelmir said:

Did the other owners declare their own CGT liability when gifting you a 25% share? 

I suspect not

The clock is already ticking then..........

canaldumidi

The donor's CGT liability (which may or may not be due - depends if it was the donor's main residence for instance) is not the OP's concern. And as we know nothing about the circumstances of the gift we cannot comment.

the OP's liability depends on what the value of the property was at the time of the gift (25% of market value at that time), and the ultimate sale price (25% thereof). Liability is based on the difference (the gain in value).

From that gain can be deducted various allowance (25% of solicitor's/EA's fees etc). The OP then also has an annual allowance (currently £12K odd - may change in April), provided he's not used it elsewhere eg selling his yacht.

CGT on the final figure will be charged at either 18% oe 28% (or a mixture of the 2) depending on OP's income.

Paying an RICS surveyor should provide an official figure which HMRC are likely to accept to establish the market value when the gift was made if this is not known.