CGT and inheriting half share of house
Posted: Thu Nov 10, 2011 3:59 pm
Aunt A bought a house in Chester in the 1960's with financial help from her brother B and sister C. Aunt A was the sole owner.
Aunt A died in 1985 and left the house to her brother B and sister C. The house was then owned by them as joint tenants. Brother B lived in the house while sister C lived in another part of the country.
Brother B died in August this year so sister C became the sole owner of the house. She already owns her own home so she is selling the second house in Chester.
I am unclear of her CGT liability. I presume she is liable for CGT on her half share of the house from 1985 to 2011? Is there any CGT liability on the half share that she inherited on the death of her brother?
To suggest some rough figures, the house in Chester might have had an approximate value of £50,000 in 1985 when she became a joint owner, and an approx value of £200,000 on the date of her brother's death. (The £200,000 will be the value entered on the IHT form.)
If she sells the house for, say, £220,000 would she be liable for CGT on the half share that she has owned since Aug 2011?
Conversely, if she sells for only £180,000 does that 'loss' (the difference between £200,000 and £180,000) have any bearing on CGT calculations?
And finally, does the fact that sister C contributed towards the original purchase of the house in the 1960's have any relevance?
As you will gather I am completely new to CGT. Any help would be much appreciated.
Aunt A died in 1985 and left the house to her brother B and sister C. The house was then owned by them as joint tenants. Brother B lived in the house while sister C lived in another part of the country.
Brother B died in August this year so sister C became the sole owner of the house. She already owns her own home so she is selling the second house in Chester.
I am unclear of her CGT liability. I presume she is liable for CGT on her half share of the house from 1985 to 2011? Is there any CGT liability on the half share that she inherited on the death of her brother?
To suggest some rough figures, the house in Chester might have had an approximate value of £50,000 in 1985 when she became a joint owner, and an approx value of £200,000 on the date of her brother's death. (The £200,000 will be the value entered on the IHT form.)
If she sells the house for, say, £220,000 would she be liable for CGT on the half share that she has owned since Aug 2011?
Conversely, if she sells for only £180,000 does that 'loss' (the difference between £200,000 and £180,000) have any bearing on CGT calculations?
And finally, does the fact that sister C contributed towards the original purchase of the house in the 1960's have any relevance?
As you will gather I am completely new to CGT. Any help would be much appreciated.