Will I have to pay CGT on sale of my parents house

[Micheal Lea]

After losing the matrimonial home in a divorce case/settlement in 1992, I invested some money into a new house with my parents. In return a trust deed was set up and my parents gave me 50% of the property. The deeds of the property remained in my parents name. I was interviewed by the IR after my divorce and one of the questions was where was my PPR. I gave them my parents address and have not changed this to this day. I did live at this address for some considerable time, and also maintained an office within the grounds which I still use today.

About 4 years ago I bought an apartment with my new partner on a 50/50 basis. My father died in 1996, and my mother has just died and therefore I must now sell their house which is worth around £300,000. Will I have to pay CGT on my 50% Trust Share. Bear in mind I have never changed my PPR from my parents address, and all my tax forms are also sent to this address.

Hope you can help.

Regards

[Ian McTernan CTA]

PPR is a question of fact. You will incur some CGT on the disposal, but this is mitigated by some PPR relief. Without further details I cannot calculate the gain applicable, for which I would charge a fee.

Ian McTernan CTA
McTernan Associates Ltd
Chartered Tax Advisers
ian@imcternan.com