Capital Gains on gifted shared chalet

RuthDavid

My late mother bought a holiday chalet over 20 years ago and put myself and my brother on the deeds as well as herself. She died 18 months ago and left her estate to us both. We want to sell the chalet and buy another house that my brother can own out right, but we are unsure of capital gains tax implications. I own property but my brother has never bought a house before.

Keep_pedalling

Assuming you owned the chalet in equal shares each of you would have a CG liability of 1/3 of the gain in value from the date of purchase to the date of sale. If the value has increased in the Since you mother’s death then you will each have a CG liability on 50% of that gain as well.

How much you pay will depend on your incomes, if either of you are higher rate tax payers it will be 28%, is basic rate 18% or a combo of the two rates. Ownership of the chalet may have cost your brother his first time buyer status.

Jeremy535897

Keep_pedalling said:

Assuming you owned the chalet in equal shares each of you would have a CG liability of 1/3 of the gain in value from the date of purchase to the date of sale. If the value has increased in the Since you mother’s death then you will each have a CG liability on 50% of that gain as well.

How much you pay will depend on your incomes, if either of you are higher rate tax payers it will be 28%, is basic rate 18% or a combo of the two rates. Ownership of the chalet may have cost your brother his first time buyer status.

I think you mean 1/3 of the gain from date of purchase to date of death, plus 1/2 the gain from date of death to date of sale.

macman

It makes no difference if you or your brother own another property or not, as far as CGT is concerned, that is only relevant to first time buyers paying no stamp duty up to £300k.
How was the property owned: equal 1/3 shares each, tenants in common?