cgt & tenants in common

[sheila52]

In 1998 My Mothers arranged for her property to be transfered to myself & my 2 sisters as 'tenants in common'. She continued to live there until her death in 2008. We did not live with her and The property has been sold now. I may be a bit dense but I really just wanted to check for sure that we have to pay CGT on our share of proceeds!. Thanks for your help!

Sheila

[pqtaxation]

Yes, each of you will be liable for CGT on one third of the gain between the market value in 1998 and the realised proceeds in 2011 less the annual exempt amount of £10,600 in 2011/12 and any capital improvements you (indivudually) paid for.

Quite separately, as you mother continued to live in the house (presumably rent-free) until her death in 2008 after she gifted it to you in 1998, you no doubt realised that the gift was subject to reservation of benefit and its market value in 2008 was aggregated with her free death estate on her inheritance tax account.