Benefits and house sale

CEON44

macman said:

noitsnotme said:

There may be a capital gain and CGT to pay if it has increased in value over those 20 years, although I would imagine the personal allowance would negate most if not all of that.

Where in the country do houses go for £75000?  You can barely buy a beach hut in some places in the South for that!

To attract CGT on £75k divided by 6, after the annual allowance, the property would have to have cost less than about £200 20 years ago, unless the OP has other gains.  It's cheap up North, but not that cheap.
You need to get out more: there are tens of thousands of houses on sale for less than £75K, but they're just not south of Watford.

CGT is the next question. With regards the property it is in Northern Ireland and an ex council house.  That is why the cost is £75k. In fact the property was bought about 20 years ago for £100k. The value dropped badly in 2008 and never really recovered due to the area becoming more run down and a lot of criminal damage happening. Wifes parents split and sold their house, mother moved away, but father stayed and bought this smaller property. The parents at the time bought this property in 6 childrens names. They then divided remaining funds between themselves and divorced. So will CGT be applicable?  In reality there was a loss of 25k but i wondered if they would still be liable as they didnt pay out the original 100k. It was gifted by parents.

Alice_Holt

CEON44 said:

macman said:

noitsnotme said:

There may be a capital gain and CGT to pay if it has increased in value over those 20 years, although I would imagine the personal allowance would negate most if not all of that.

Where in the country do houses go for £75000?  You can barely buy a beach hut in some places in the South for that!

To attract CGT on £75k divided by 6, after the annual allowance, the property would have to have cost less than about £200 20 years ago, unless the OP has other gains.  It's cheap up North, but not that cheap.
You need to get out more: there are tens of thousands of houses on sale for less than £75K, but they're just not south of Watford.

CGT is the next question. 

       Not really a question for the benefits board, is it ?

       Given the complicated circumstances and the fact that it was a gift, I think you may need to consult an accountant for certainty.
       Does IHT come into play? 
      You are aware that each individual has a CGT allowance - c£12.3k pa ?