Tax Implications for keeping the money from a gifted home?

Yorkie1

That response from AI is not entirely correct.

CGT annual exemption is now £3K per year, not £6K.

IHT planning - as the father has remained in the property, not paying full market rent, after transferring it, the 7 year period does not start running (because there is a Gift With Reservation of Benefit). So to say "it becomes less of an issue" is entirely misleading and inconsistent with the other points in that heading.

Bigphil1474

OP, deduct the value of the property when it was gifted from the sale price, each of you then pays CGT on their share of that gain. However, the % tax on that gain is determined by your tax bracket, not your dads. If one has an income of £100k, they would pay more CGT than one who has an income of £15k, even if the gain is the same.

Each share owner also gets a £3k allowance. So basically, if the gain was £9k, between 3 of you there would be no gain to be taxed. Anything above £9k would be taxable , but the gain is basically added to your taxable income to work out what rate you pay. If your taxable wage plus your taxable gain are less than the standard rate tax threshold, then you'd pay 18% on the gain, if it's more, you'd pay a higher % rate.