Hi All,
I would really appreciate any insight into my situation that you may have. I have spoken with two different advisors (accountant and solicitor) and been given two different pieces of information, so I'm very confused!
The backstory:
My mother and my aunt purchased my grandparents flat from the local authority in the late 80s/early 90s. The mortgage was in my aunt's name and my mother paid her monthly for her 50% share of the mortgage. My grandparents lived in the flat rent free, although they paid council tax and ground rent/maintenance direct to the management company/council each month. My mother and my aunt did not ever receive any money from my grandparents.
My mother died in 1997, without a will, but everything passed to my father (they were married at the time). My father died in 2001, with a will - leaving everything to me, however the flat was not mentioned in it. I am only child.
My aunt, mother and grandmother had a 'deed in trust' for the flat. I am not mentioned in this. My aunt however did add me to the title deeds in 2009.
My grandfather died in 2003 and my grandmother continued to live in the flat, rent free, until May this year, when she moved into a care home. At this point the flat was put on the market and the sale completed last week. Proceeds were split 50% to my aunt and 50% to me.
(hope you're still with me!).
So, the question is - am I liable for capital gains tax? and if so - as an inheritance? If I inherited the flat, I presume I inherited it when my father died? Or, do I not owe anything because of dependents living relief?
My aunt has been informed by an inheritance specialist solicitor that we owe nothing at all in CGT. I have been informed by a CGT accountant that I owe based no the profit from when I inherited in 2001 to now.
Other figures if it helps:
Value of flat at time of dad's death/probate - £80,000 (my 50% share £40,000)
Flat sold for £190,000 (my 50% = £85,000)
I am a higher rate tax payer
I would be so grateful for any insight!
Thank you so much if you go this far!
Blondie
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