CGT for selling half share in inherited property to sibling

Bookworm105

clod said:

Thank you all for the advice, this is exactly what I was wanting to find out.

So what I'm understanding from this (and if anyone can confirm?) is that, CGT will be due within 60 days of my brother taking ownership, regardless of if any money has actually changed hands at this point and, the amount due will be based on the current value minus the 2007 value (which can be challenged), regardless of what we actually decide on price between us?

as your OP mentions use of a conveyancer then there will presumably be at least something in writing between you and sibling, probably a formal contract. The 60 days will start from the point that contract goes "unconditional" (the date the contract is "made")  that sets the formal "disposal date".

- if the contract is written such that ownership transfers on (or before) full payment, then disposal date is the date of the contract (not the date the conveyancing completes or money physically changes hands)
- if contract requires consideration to be given (money to you) and received (ownership to him) on different dates then that may muddy the water as the contract is then "conditional" and is not "made" until the conditions are met 

CG14250 - Computation: Computation: date of disposal: importance and how to determine the date of disposal - HMRC internal manual - GOV.UK

silvercar

Keep_pedalling said:

CGT is based on market value rather than the amount paid when selling to a connected person. 

The market value of half a property is less than half the value of a property. Then factor in the fact that it’s occupied.

Bookworm105

silvercar said:

Keep_pedalling said:

CGT is based on market value rather than the amount paid when selling to a connected person. 

The market value of half a property is less than half the value of a property. Then factor in the fact that it’s occupied.

as already mentioned 

clod

Thank you for clarifying this, I am probably a bit naive thinking i would only have to pay CGT on what I actually recieved as a gain - from this, it sounds like even if I decided to give my brother my half without any payment, I would still have to pay CGT on the value that could have been gained?

Probably going to talk to a solicitor/advisor see what our best options are, there's nothing urgent that is relying on the sale & it may be we keep things as is, & my family will inherit my half in the long run anyway.

Thank you all for this information!

Bookworm105

clod said:

Thank you for clarifying this, I am probably a bit naive thinking i would only have to pay CGT on what I actually recieved as a gain - from this, it sounds like even if I decided to give my brother my half without any payment, I would still have to pay CGT on the value that could have been gained?

yes and for the obvious reason that were it not so for connected persons it would be simple to manipulate the tax bill by selling cheap or, as you say, giving it away for "free"

in contrast you won't sell cheap to a stranger