Tax on gifted property, what happens when you sell

UnsureAboutthis

My brother-in-law was gifted a property by an uncle some years ago. He is considering selling.
The value has gone up by about 80k. BiL still works.
The uncle paid CGT when he gifted the property.

Does my Bil pay any CGT as things stand? Thanks for helping.

Keep_pedalling

If it is not his home then yes he will be liable for CGT, but if he has been living in it since it was gifted it will be exempt.

UnsureAboutthis

Cheers, The place was rented out for about 18 months as they allowed the renter to stay until the renter handed in their notice. Then it stood empty for about a year as B-I-L decided what to do and then he and his pattern moved in there a few years ago and it has been their main residence. Does that make a difference? (It was empty for about a year as I said and they lived there for about 3 years)
The uncle paid CGT

Keep_pedalling

The CGT his uncle paid was on the gain in value between the date he took ownership and the date he transferred it. Your BiL’s CGT liability will be on the £80 gain for the period he has owned it. He will be able to subtract selling costs from the gain, and the costs of improvements may also be claimable. As he has lived there for some of his ownership he will also be able to claim private residence relief

https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief-2022

UnsureAboutthis

@Keep_pedalling
Thank you.
I've been reading the link, but it states 2021/22, is this relief  ongoing?  IE, if BiL sell next year or a bit more than that.

I'm assuming the cost of improvements is not maintenance costs, EG, repairing a leaky tap, etc?

[Deleted User]

UnsureAboutthis said:

@Keep_pedalling
Thank you.
I've been reading the link, but it states 2021/22, is this relief  ongoing?  IE, if BiL sell next year or a bit more than that.

I'm assuming the cost of improvements is not maintenance costs, EG, repairing a leaky tap, etc?

The information in the link is still valid. 

You are correct in your latter assumption. Only capital improvements can be deducted. 

sheramber

Who knows what the rules will be in the future.

All we can go on is what applies at present.