CGT on property gifted with reservation

[Stuartdow10]

Hi,

Hoping for some advice to lower or avoid paying capital gains tax on a property.

The property was gifted in 1995 by my parents to me. My parents continued to live in this property until death this year.

The house was valued at date of gift to be £100,000.
There has been a conservatory added on for £20,000.
The property is now valued at £220,000.

IHT is not an issue as total estate under 600k including the property.

I know I can use my husband and I’s cgt annual allowance and that I can deduct the cost of conservatory .

Is there any reliefs available or ways around paying the 28% on 100k gain?

Thanks in advance.

[AGoodman]

No, I'm afraid not. This is a classic trap and why giving your home to your children is usually a bad idea - particularly as here where IHT is not an issue.

You probably know this but just in case: to use both allowances you will first need to transfer the property into joint names.